How pip value is calculated for AUD/NZD
AUD/NZD is a cross: neither currency is the US dollar. One pip on a standard lot is worth 0.0001 × 100,000 = 10 NZD, converted to US dollars by multiplying by the NZD/USD rate. At NZD/USD 0.6050 that is $6.05. The pip value moves with NZD/USD, not with the AUD/NZD price.
Worked example
An account of $10,000.00 risks 1% on a AUD/NZD trade with a stop loss 30 pips from entry. Assumes NZD/USD at 0.6050, an example rate.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.0001 × 100,000 × 0.6050 = $6.05
- 3. Position size: $100.00 ÷ (30 pips × $6.05) = 0.55 lots
Most brokers accept lots in steps of 0.01, so round down to 0.55 lots. If the stop loss is hit, the loss is about $99.83, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.