Can you explain how pips are calculated in cryptocurrency trading?

1 answers

• Dhanushka WijesingheApr 19, 2024 · a year ago
  In cryptocurrency trading, pips are calculated by taking the difference between the closing price and the opening price of a trade and multiplying it by the lot size. Pips represent the smallest unit of price movement in a currency pair. For example, if the opening price of BTC/USD is $10,000 and the closing price is $10,500, and you traded 1 lot, the pip value would be $500. It's important to note that the pip value can vary depending on the currency pair and the lot size. Understanding how pips are calculated is crucial for risk management and determining potential profits or losses in cryptocurrency trading.
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