How much is 100 points in forex?

In forex trading, the term "points" is often used interchangeably with "pips" (percentage in point), which represents the smallest price movement in a currency pair. The value of 1 pip, and therefore 100 pips or points, depends on the specific currency pair being traded and the size of the position (lot size).

The value of a pip is typically calculated using the following formula:

Value of 1 Pip = (Pip Value / Exchange Rate) * Lot Size

The pip value varies based on the currency pair and the currency in which your trading account is denominated. Let's provide an example to illustrate:

Suppose you're trading the EUR/USD currency pair, and your trading account is denominated in USD. The pip value for a standard lot (100,000 units) of EUR/USD is approximately $10.

If the exchange rate for EUR/USD is 1.2000:

Pip Value = ($10 / 1.2000) = $8.33 (approximately)

So, 100 pips (or points) in the EUR/USD currency pair would be worth approximately: 100 pips * $8.33 = $833

Keep in mind that this calculation can vary based on the currency pair, lot size, and the exchange rate at the time of calculation. Additionally, if your trading account is denominated in a currency other than USD, you would need to adjust the pip value accordingly based on the exchange rate between your account currency and the quote currency of the pair you're trading.

Before making any trades, it's important to double-check the pip value calculations for the specific currency pairs you're trading and ensure that you understand the potential profit or loss associated with different pip movements.