How pip value is calculated for USD/CHF
USD/CHF is quoted in CHF, so one pip on a standard lot is worth 0.0001 × 100,000 = 10 CHF. To turn that into US dollars, divide by the USD/CHF rate itself: at 0.8900 that is $11.24. The USD pip value therefore moves with the price: it falls when USD/CHF rises and rises when it falls.
Worked example
An account of $10,000.00 risks 1% on a USD/CHF trade with a stop loss 30 pips from entry. Assumes USD/CHF at 0.8900, an example rate.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.0001 × 100,000 ÷ 0.8900 = $11.24
- 3. Position size: $100.00 ÷ (30 pips × $11.24) = 0.30 lots
Most brokers accept lots in steps of 0.01, so round down to 0.29 lots. If the stop loss is hit, the loss is about $97.75, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.