Question about pips

[moneydeep]

each time one buys a lot say I buy 2 lots of gbpusd how do I know how much money I am buying exactly worth.

I heard there is a exchange rate eg number of lots x 100000 or something like that.

Where can I get that info? and is it always the same? or does it change?

[muhammad]

each time one buys a lot say I buy 2 lots of gbpusd how do I know how much money I am buying exactly worth.

I heard there is a exchange rate eg number of lots x 100000 or something like that.

Where can I get that info? and is it always the same? or does it change?

I don`t have answer for all your Q`s
but I know that used margin depended n the pair you trade

[FXOjafar]

each time one buys a lot say I buy 2 lots of gbpusd how do I know how much money I am buying exactly worth.

I heard there is a exchange rate eg number of lots x 100000 or something like that.

Where can I get that info? and is it always the same? or does it change?

You are on the right track there. 2.0 lots of g/u at the moment is (1.9727*100,000)*2=$394,540 or $1972.70 margin use at 1:200 leverage.

[moneydeep]

You are on the right track there. 2.0 lots of g/u at the moment is (1.9727*100,000)*2=$394,540 or $1972.70 margin use at 1:200 leverage

hey thats what I am looking for. Where do you find out that from?

(1.9727*100,000)

[nicky2k]

You are on the right track there. 2.0 lots of g/u at the moment is (1.9727*100,000)*2=$394,540 or $1972.70 margin use at 1:200 leverage.

Just a small question, where the "100,000" comes from? what does that number represent?

I understand that "1.9727" is the price for the pair, and the other numbers are more or less self explanatory... excpet for the 100,000... can someone please clarify this to me...

[borovic]

100 000 = standard 1 (one) lot size...........

[FXOjafar]

100 000 = standard 1 (one) lot size...........

Thanks Borovic. That is correct.

[FXOpen Manager]

100000$ is the price of standart lot on Forex market. 1lot=100K$. Ofcourse, this is to much for small investors, thats why Brokers allow you to trade with the leverage which gives you an oportunity to make deals with 100 or even 500 times more money than you have. So, now it is easy to count price of 1lot (how much money you will need to open position) if the leverage is 1:100 it will be: 100000$/100 times (1:100) = 1000$ required to open 1 lot with 1:100 , so with 1:200=500$ and 1:500=200$ . What is the most interesting, that leverage have influence only on the lot price but value of the 1 pip will be the same for all leverages. 1 lot=10$

[nicky2k]

100000$ is the price of standart lot on Forex market. 1lot=100K$. Ofcourse, this is to much for small investors, thats why Brokers allow you to trade with the leverage which gives you an oportunity to make deals with 100 or even 500 times more money than you have. So, now it is easy to count price of 1lot (how much money you will need to open position) if the leverage is 1:100 it will be: 100000$/100 times (1:100) = 1000$ required to open 1 lot with 1:100 , so with 1:200=500$ and 1:500=200$ . What is the most interesting, that leverage have influence only on the lot price but value of the 1 pip will be the same for all leverages. 1 lot=10$

Thank you very much for detailed explanation, now suddenly it's very clear! Thanks admin!

[moneydeep]

Thanks to all of you especially Manager for clearing my doubts. In the begining i was so confused i wrote pips instead of lots on the forum topic. lol