Pip Calculator Indicator
Pip calculator is an automatic risk management tool for MT5 users. Best for forex and stock traders who evaluate risk before making buy/sell decisions.
The Pip Calculator is an automatic MT5 trading value indicator. It determines the price value changes per pip based on your account deposit currency and expected trading lot size.
Apart from technical analysis, traders require to manage risks by adjusting their trading volume. For busy traders, it becomes hard to calculate the value per pip and adjust lot sizes during active trading hours. Especially if you are a frequent trader, you need to be quick in decision-making to avoid missing other ongoing opportunities. In this regard, a quick pip value calculation tool may help boost the speed of your risk calculation process.
According to our review, the Pip Calculator suits all the timeframes of MT5. Besides, it supports all types of forex, stocks, and cryptocurrency charts.
How to use the Pip Calculator Indicator in MT5?
Once you install the Pip Calculator on your MT5 platform, it automatically initiates its calculation process by determining your deposit currency. Next, it uses the expected trading lot size to calculate the value per pip and point. The indicator uses one trading lot by default to determine the pip value. Nevertheless, you can always change it according to your expected trading volume size in the indicator’s settings.
Value of one point represents the smallest changes of the exchange rate based on per tick movement of the price. The value of one pip is ten times bigger than one point. As you can see in the above USD/JPY chart, the value of one point is $0.770 whereas, the value of one pip is $7.70.
Calculating the value per pip helps us to assess the budgeted risk against each trade entry. For instance, your risk budget for each trade is $500, and you are about to place one lot buy order for EUR/USD. Now, if one pip value of the currency is $10, then your stop-loss budget for this particular entry is $500 ÷ $10 = 50 pips. At this point, if the trade requires more than 50 pips SL, then you’ll have to adjust your trading lot size so that the risk doesn’t exceed $500.
Conclusion
If you are an active trader and use the MT5 platform, the Pip Calculator is your daily risk management companion. It lets you quickly determine the amount of money you are willing to risk for any particular entry. Besides, the indicator offers an easy demonstration of pip value so that everybody can read the data for making proper buy-sell decisions. Novice trading individuals who find it complicated identifying the pip value of different financial assets at a time may find this calculator extremely helpful. Moreover, a constant display of the pip value on the chart will keep reminding you “know your risk before you trade.”
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