This website uses cookies
We use cookies to target and personalize content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you've provided to them and that they've collected from your use of their services. You consent to our cookies if you continue to use this website. Learn more
Allow Disallow

How to calculate the cost of one point?

The cost of 1 point of the financial instrument price is calculated according to the following formula:

<Cost of 1 point> = (Contract * (Price + One_Point)) - (Contract * Price)

where:
Contract – the contract size.
Price – the current quote of the instrument.
One_Point – the size of 1 point.

Example:

Let’s calculate the cost of 1 point for a long position of 1 lot in EURGBP to be opened on the account with the USD as the base currency at the price of 0.8365.

Contract: 100,000 (1 lot is 100,000 units of the base currency).
Price: 0.8365.
One_Point: 0.0001.

<Cost of 1 point> = (100,000 * (0.8365 + 0.0001)) - (100,000 * 0.8365) = 10.00 GBP

To convert this number into the account currency, multiply it by the current rate of GBPUSD.

10.00 GBP * 1.5417 = 15.47 USD

To quickly find out the cost of 1 point of some particular asset, we recommend to use Trading Calculator.