How To Calculate Pips In Volatility 75 Index & Other Volatility Indices.

While trading the volatility 75 index, knowing what a pip is and how to calculate it is very essential. This post will explain what Pip is in trading and how to calculate it for the volatility 75 index and other volatility indices.

What is Pips In Volatility Indices Trading?

A “pip” is a unit of measurement used to measure the change in the value of a particular instrument (the volatility 75 index in this case). A higher Pip value indicates that the price has traveled a longer distance.

Pips in volatility indices trading are used to calculate the profit or loss on a trade, as well as to determine the appropriate level for setting stop-loss and take-profit orders.

Save yourself stress. Use our Pip calculator to calculate Pip values for your synthetic indices trading. Click here to get access. It is free

How To Calculate Pips In Volatility 75 Index

You need the entry price, Closing price and lot size of your order to calculate pip value. Once you have these three parameters, you can calculate pip using the expression below.

For A sell order:

Pip Value($) = (Entry price – Closing price)*Lot size

For Example, If you entered a trade at $5000 price level and you closed at $4800 price level using 0.5 lot size;

Also Read:  Range Break indices Explained

Pip value = (5000-4800)*0.5 = $100

For a buy order; 

Pip Value($) = (Closing price – Entry price)*Lot size

For example; if you bought an asset at $3000 and sold at $3080, with a lot size of 0.8;

Pip Value = (3080-3000)*0.8 = $64

Note: This Formula works for every other synthetic Indices

Volatility Indices Pip Calculator

You can also use the calculator below to calculate Pip value of volatility indices by providing the required parameters.

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Boom and Crash Pip Calculator (copy 2)
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