How pip value is calculated for XTI/USD
WTI crude oil (XTI/USD) is quoted in US dollars per barrel. Here one pip is 0.01 and a standard lot is 1,000 barrels, so one pip on one lot is worth $10.00, and a $1.00 move is 100 pips. Oil CFD contract sizes vary between brokers (100 and 1,000 barrels are both common), so confirm on your platform.
Worked example
An account of $10,000.00 risks 1% on a XTI/USD trade with a stop loss 50 pips from entry.
- 1. Risk amount: $10,000.00 × (1% ÷ 100) = $100.00
- 2. Pip value per standard lot: 0.01 × 1,000 = $10.00
- 3. Position size: $100.00 ÷ (50 pips × $10.00) = 0.20 lots
Most brokers accept lots in steps of 0.01, so round down to 0.20 lots. If the stop loss is hit, the loss is about $100.00, before spread, commission and any slippage.
These are the calculator's default inputs above, so its result matches.