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 Investment Calculator.