Pip calculator ICMarkets is a modern calculation tool provided by ICMarkets to users. With its convenient service, traders can more easily measure pip values. From there, make the most effective investment decisions possible. Let’s learn more about this term with Learn Forex Trading in the article below.
Find out information about the term “Pip calculator ICMarkets”
Pip calculator ICMarkets is an extremely fast and convenient set of pip value calculation tools of ICMarkets.
What is Pip in Forex?
To help readers better understand its origin and uses. First, we will learn what the term “Pip” in Forex means.
Pip is the abbreviation of the phrase “Point in Percentage”. It is a unit that measures the smallest change between the value of two currencies. Pip is expressed as a single digit, at the 4th decimal place in the value of the forex pair.
For example, The price of the EUR/USD currency pair was 1.1401 but has now moved to 1.1402. So we can see that the change in pip is 1.
However, the above pip calculation method does not apply to all forex prices. The Japanese yen is an exception.
Formula to calculate pip value on Forex ICMarkets
Before starting to calculate the Pip value ICMarkets calculator. The first thing you need to note is that the value of 1 pip will be completely different depending on the currency pair. For example, when we trade EUR/USD, the value of 1 pip is displayed as USD. When trading the GBP/JPY currency pair, the value will be displayed in JPY.
Furthermore, to calculate pip value, we need to rely on 3 main factors: Currency pair, trading account type, and transaction size. Specifically, it will be divided into 2 cases and applied using the formula below.
- Basic currencies such as GBP/USD, EUR/USD…
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Value of 1 pip = (Trade size x 0.0001) / Market rate |
- Other basic currencies: GBP/JPY, EUR/JPY…
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Value of 1 pip = (Trade size x 0.01) / Market rate |
However, we can see that the exchange rate on the market continuously changes every hour and every day. Therefore, applying the manual method to calculate pip value will face many difficulties and is only relative and less accurate. To overcome this situation, let’s use the Pip calculator tool with Learn Forex Trading.
See more: ICMarkets: A leading trading platform for the financial markets
What is Pip calculator ICMarkets?
Analyze the meaning of each word in the above phrase. We can see that pip is a percentage in points, calculator is a calculator. From there we can understand that it is a tool to calculate the value of movements between currency pairs on the market. With the support of the tool, your calculations will be guaranteed to be as accurate and fast as possible.
How does the Pip calculator work?
The ICMarkets Pip calculator tool operates according to an optimized and intelligent mechanism. With just a few basic data entry operations on ICMarkets. Results will be immediately returned to users with criteria that ensure safety and speed.
How to calculate pip using ICMarkets pip calculator?
If you still don’t know how to calculate the pip value using the ICMarkets pip calculator tool. Then please take the time to study the detailed instructions in the information below.
- Step 1: Visit the ICMarkets homepage => In the “More” category => Click “Forex calculator”.
- Step 2: Select the “Pip Calculator” tool => Continue entering the necessary data for the calculation. Such as: Currency account, trading currency pair and trade size.
- Step 3: Immediately, the “Current Conversion Price” section on the window will display the current conversion value for you.
It can be seen that the calculation and operation process is extremely simple and fast, right? That will bring you many benefits in investing and trading in ICMarkets. You can test it with ICMarkets xauusd which is also a good idea!
Benefits of using the ICMarkets pip calculator
To see what benefits using the ICMarkets pip calculator will bring to users. So readers, please immediately see the clear evidence below from Learn Forex Trading.
Supports quick calculation of ICMarkets pip value
As we know, pip value directly affects trading in the market. So all traders must understand the numbers to make the most effective investment decisions. With just a small difference in value, a loss will definitely happen to you. Therefore, the birth of the ICMarkets Pip calculator tool has partly overcome the bad situation for investors.
With this smart calculation tool, the pip value of currency pairs will quickly be calculated accurately. Helps you discover potential opportunities or manage risks in transactions.
Easy currency conversion
The final advantage that this useful set of calculation tools brings to users. That is to support conversion to the corresponding currency easily. We can see that in ICMarkets, there are many different currency pairs to serve the needs of players. Therefore, converting will make it easier for traders to monitor the process and manage the risks of their transactions.
Choose the appropriate ICMarkets Lot Size
The second advantage that the Pip calculator brings. That makes it easier to choose the appropriate ICMarkets Lot Size. Lot size is an important factor that helps users minimize risks and optimize profits significantly. So with the support of ICMarkets’ calculation tool, it will be easier for investors to adjust and choose the most appropriate lot size for each trading case.
See more: Instruct with an ICMarkets open account swiftly
Some limitations of Pip calculator ICMarkets
However, the Pip calculator has brought users many significant benefits. However, there are still some limitations that exist in it. Below are the disadvantages of the tool that traders need to keep in mind when using it.
- To produce accurate results of a pip value, the input data on ICMarkets must be accurate. However, sometimes the market fluctuates too quickly, and the ICMarkets exchange has not yet been updated, causing misleading results.
- When using ICMarkets’ pip calculator, investors must have professional knowledge of Forex. Because the calculator only supports pip value calculations, there is no substitution feature.
- Some permutation or transaction cost calculations performed on the Pip calculator will sometimes fail to calculate. Because it usually only focuses on changes in current market rates.
Summary:
Learn Forex Trading has given readers all the information on Pip calculator ICMarkets. Hopefully, that data will help you better understand pip values, how to calculate them and use the tool most effectively. In addition, if readers do not clearly understand or do not have information about ICMarkets spreads, please refer here!
FAQs:
Is Pip’s accuracy absolute?
Only at a relative level, because the tool operates based on many volatile factors. So sometimes the results given are misleading.
Should you use a calculator instead of the manual method?
Yes, because using the tool not only produces highly accurate results but also ensures saving a lot of time and effort.
Pip calculator ICMarkets require fees?
ICMarkets customers can use this toolkit for free.
