Fractional pips can allow for tighter spreads, and give a better understanding of a currency price’s movements. The value of a pip is calculated by multiplying the amount of the trade in lots by one pip in decimal form, and then dividing it by the xcritical exchange rate of the quote currency in your pair. Once you select your account currency and the trade size, the calculator will calculate the pip value with Standard, Mini and Micro lots with the xcritical market rates. A ‘Pip’, short for ‘point in percentage’, quantifies exchange rate movements between two currencies in Forex trading. It can help you to calculate the optimal size of your initial position depending on your stop-loss in pips, risk tolerance and account size. To identify a pip in a currency pair, it would depend on the pair. Some pairs have their pip at the 4th decimal while some in…

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