Commission Calculation

The calculation is performed as follows:Commission = (trade size * $65 per million traded) * account currency exchange rate.Example:

  • Trading 100,000 GBP/JPY with an account currency in EUR
  • 0.000065 * 1,000,000 = $65
  • GBP/EUR = 1.19
  • 65 * 1.19 = €77

*Please note: Since its inception in 1999 the euro always takes precedence as the base whenever it is paired with another currency. For the above calculation, we need to know how many euros one unit of GBP is. In this case we simply divide 1 by the EUR/GBP exchange rate in order to reverse the pair (1/0.84 = 1.19).

 

Margin Calculation

The calculation is performed as follows:Required Margin = (Trade Size (lot size) / leverage) * account currency exchange rate (if different from the base currency in the pair being traded).Example:

  • Trading 1 mini-lot of EUR/USD using 100:1 leverage with an account currency denominated in USD
  • 1 mini lot = 10,000
  • Leverage = 100
  • Base currency/Account currency exchange rate = 1.33
  • 10,000/100 = 100
  • 100 * 1.33 = 133
  • Required margin on this trade is $133.
Pip Value CalculationThe calculation is performed as follows:Pip value = (one pip / exchange rate) * lot sizeExample:

  • Trading 1 lot of EUR/USD with an account denominated in EUR.
  • One pip = 0.0001
  • Exchange rate = 1.35554
  • 0.00001/1.35554 = 7.37713
  • 7.37713 * 1 = 7.37713
  • Each pip is worth €7.38

This figure will need to be converted into your account currency if it is different. FxPro’s Pip Value Calculator automatically does this for you.

 

Swap CalculationThe calculation is performed as follows:Swap = (one pip / exchange rate) * trade size (lot size) * swap value in points.Example:

  • Trading 1 lot of EUR/USD (Short) with an account denominated in EUR.
  • One pip = 0.00001
  • Exchange rate = 1.35230
  • Short swap rate = -0.9
  • 1 lot = 100,000
  • 0.00001/1.35230= 7.39480 * 0.9 (EUR/USD Swap short) = -6.65532= 0.00001 *100,000 * (-0.9) / 1.3523 = 0.66553
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