Hi. I’m calculating the Pip Value for my trades but I have a question if someone can help me or tell me his opinion.
In a nutshell, when I want to trade for example AUDCAD on my USD account, I know that each 1 PIP Movement of trades in this chart will result in 10CAD. In general 1pip in XXXYYY chart results in 10YYY (except JPY pairs which will result in 1000 JPY).
Then, in order to calculate my Pip Value in dollars (my account’s currency), I have to convert these 10CAD to USD. So, I’ll use the USDCAD chart and the rate is 1.24900. That would mean that my “Dollar Pip Value” for AUDCAD is 10CAD/1.24900 = 8USD.
My problem though is:
Should I use the Ask OR Bid Price of the USDCAD chart that I want to convert CAD to USD?
Ask and Bid Prices being “almost the same” doesn’t help me because I want to make an EA and need to know which of the 2 rates (Bid or Ask) I should use.
Or maybe it doesn’t matter which one I use as long as I stick with it and always use that same one? (for all my calculations on all pairs I want to open BUY and SELL orders)
Or maybe it depends? Maybe it depends if I open a BUY or SELL order? I maybe then need the Ask for BUY Order and the Bid for SELL Order or the opposite.
Thanks for any help or any opinion on the matter in advance
In a nutshell, when I want to trade for example AUDCAD on my USD account, I know that each 1 PIP Movement of trades in this chart will result in 10CAD. In general 1pip in XXXYYY chart results in 10YYY (except JPY pairs which will result in 1000 JPY).
Then, in order to calculate my Pip Value in dollars (my account’s currency), I have to convert these 10CAD to USD. So, I’ll use the USDCAD chart and the rate is 1.24900. That would mean that my “Dollar Pip Value” for AUDCAD is 10CAD/1.24900 = 8USD.
My problem though is:
Should I use the Ask OR Bid Price of the USDCAD chart that I want to convert CAD to USD?
Ask and Bid Prices being “almost the same” doesn’t help me because I want to make an EA and need to know which of the 2 rates (Bid or Ask) I should use.
Or maybe it doesn’t matter which one I use as long as I stick with it and always use that same one? (for all my calculations on all pairs I want to open BUY and SELL orders)
Or maybe it depends? Maybe it depends if I open a BUY or SELL order? I maybe then need the Ask for BUY Order and the Bid for SELL Order or the opposite.
Thanks for any help or any opinion on the matter in advance