Okay, so if the USDCHF would be 1.0000 then the pip value for GBPCHF was $10/pip/lot.dudest » Thu Jan 15, 2015 8:08 pm wrote:
Hi Gertje,
For a USD-denominated a/c, the pip value is constant for the USD quoted pairs
E.g: EURUSD always works out to $10 per pip per standard lot
But for the same a/c, the crosses will have different pip values, and it will change with price (!) (due to conversion back to your deposit currency, i.e the USD). Had your deposit currency been the CHF, the pip-value would have been standard.
Wrote a simple pip-value indi sometime last year (attached).
Watching it on a couple of pairs (+ coding for risk-based lot-size management in my EAs before that) is what made me realize the variation
The pip value for GBPCHF has definitely gone up as price fell, it used to be below $10/pip/lot
Cheers
For $37/pip/lot it has to be somewhere around 0.2702 (USDCHF) which it was.
So it was the combined collapse from GBP and USD against the CHF that caused a MC in this case.
Thanks for helping me out.