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Gbpjpy Pip Value

FuturesFan

I’m a bit lost on GBPJPY pip value and could use a sanity check.

Account currency is EUR. Broker shows GBPJPY to 3 decimals (e.g., 186.123). I know JPY pairs use 0.01 as a pip (0.001 = pipette). If I trade 0.05 lots, what’s 1 pip worth in euros? Is it fixed or does it float as price moves?
Do I need to convert from JPY to EUR using EURJPY at the time I open the trade, or continuously as P/L updates? If there’s a big gap overnight, does the EUR conversion jump too?
Is this mental shortcut roughly right: for JPY pairs, 1 lot ≈ 1,000 JPY per pip, so 0.1 lot ≈ 100 JPY per pip, then convert JPY→EUR using EURJPY mid? If that’s the idea, should I use bid/ask or mid for risk planning?
How do you handle brokers that charge commission in USD when your account is in EUR? Do you fold a USD→EUR conversion into “cost per pip,” or just let the platform do it in the P/L line?
For backtesting and setting ATR-based stops/position size, do you lock the pip value at entry (using the then-current EURJPY) or let it vary bar-to-bar with FX conversion? What’s more realistic for risk tracking vs. simplicity?
Any gotchas with fractional pips, micro-lots, or rounding that meaningfully skew P/L on small accounts for GBPJPY?

Would love a beginner-friendly way to estimate this on the fly plus any common pitfalls people run into.

PortfolioPro

For GBPJPY, pip size is 0.01. Pip value per standard lot is 1,000 JPY; so 0.1 lot = 100 JPY/pip; 0.05 lot = 50 JPY/pip. In EUR, divide by EURJPY. Example: if EURJPY = 160.00, 0.05 lot ≈ 50/160 ≈ 0.31 EUR per pip. This value floats with EURJPY, not with GBPJPY.
The platform will re-mark P/L in EUR continuously using the current EURJPY. If EURJPY gaps overnight, your EUR P/L will jump even if GBPJPY didn’t move (translation risk).
The shortcut you proposed is fine. For planning, mid is OK; if you want to be conservative, use the side you’d actually hit when converting JPY→EUR (EURJPY ask for profits, bid for losses) and/or add a small slippage buffer.
USD commissions: treat them as additive costs. Let the platform convert to EUR. If you want an “all-in pips” estimate, convert the USD commission to EUR (using EURUSD mid) and divide by your EUR-per-pip at entry.
Backtesting/position sizing: for simplicity, lock pip value in EUR at entry using contemporaneous EURJPY. For more realism in mark-to-market, let it vary with EURJPY over time. The difference matters mostly on longer holds or when EURJPY is volatile.
Gotchas:
- Many platforms quote JPY pairs to 3 decimals; “point” ≠ “pip” (pip = 10 points). Don’t mix them in code or ATR calculations.
- Rounding on micro-lots and fractional pips can create a few cents’ drift; check your broker’s rounding increment for stops/limits and swap conversion.
- Some brokers add a conversion markup on realized P/L and swaps; that can be a hidden cost, not a pip-value change.

Quick mental math: at EURJPY ≈ 160, each mini-lot (0.1) is ₀.62 EUR/pip; half that for 0.05 is ₀.31 EUR/pip.

TechnicalTactician

Don’t assume contract size. Check your broker’s symbol spec: contract size, tick size, and tick value in EUR. That tick value already includes the EURJPY conversion and floats in real time - it’s the cleanest truth source for sizing.
Translation risk is real: your EUR P/L will wiggle with EURJPY even if GBPJPY doesn’t move. Expect jumps at rollover and triple‑swap Wednesday. If that noise bothers you, add a small buffer to risk or micro‑hedge with a tiny EURJPY position (usually overkill for short holds).
For planning, mid is fine; the bigger leak is often the broker’s FX conversion markup on realized P/L, swaps, and USD commissions. Check statements against spot to quantify it and bake it into costs.
Backtests: practical compromise is lock pip value at entry for sizing, then convert at exit for realized P/L. Only do bar‑by‑bar EURJPY if you care about path‑dependent drawdown.
Code/indicator gotcha: pips vs points on 3‑dec JPY pairs and rounding on micro‑lots. On small sizes those cents of rounding and conversion can dominate, so test with a tiny live ticket and reconcile to the statement.

MarketGuru

Yeah, that translation risk from EURJPY wiggles can drive you nuts on overnight holds-I’ve seen it turn a solid GBPJPY win into a meh EUR day just because the yen decided to party without you. Pro tip: If you’re scalping, it’s negligible, but for swings, slap a 5-10% buffer on your risk calc to cover those sneaky FX jumps. Saves the aspirin.