Let’s say you want to trade 1 lot of GBP/USD using USD as the deposit currency
Currency for Deposit: In the realm of Forex, deposit currency refers to the currency you selected to fund your account when registering with a broker, and it is visible on your trading platform. In our example, the chosen account base currency is USD.
Currency Pair: Engaging in Forex trading always entails dealing with two currencies simultaneously. These pairs, known as 'currency pairs,' consist of the base currency and the quote currency. Your profit or loss is determined by the variance in their prices. For our illustration, let's consider the currency pair GBP/USD.
Trade Size: In Forex, transactions occur in defined quantities known as lots, representing the number of currency units bought or sold. Commonly, there are four Forex lot sizes employed for trading – Standard lots (100,000 currency units), Mini lots (10,000 currency units), Micro lots (1,000 currency units), and Nano lots (100 currency units).
The Outcome: Utilizing real-time Forex market prices, the pip value calculator computes the present pip values according to the values you have entered.
