How pip value is calculated for USD/CAD
USD/CAD is quoted in CAD, so one pip on a standard lot is worth 0.0001 × 100,000 = 10 CAD. To turn that into US dollars, divide by the USD/CAD rate itself: at 1.3550 that is $7.38. The USD pip value therefore moves with the price: it falls when USD/CAD rises and rises when it falls.
Worked example
An account of $10,000.00 risks 1% on a USD/CAD trade with a stop loss 30 pips from entry. Assumes USD/CAD at 1.3550, an example rate.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.0001 × 100,000 ÷ 1.3550 = $7.38
- 3. Position size: $100.00 ÷ (30 pips × $7.38) = 0.45 lots
Most brokers accept lots in steps of 0.01, so round down to 0.45 lots. If the stop loss is hit, the loss is about $99.63, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.