The cost of 1 point for every financial instrument is calculated according to the following formula:
<Cost of 1 point> = (Contract * (Price + One_Point)) - (Contract * Price)
Contract – the contract size.
Price – the current quote of the asset.
One_Point – the size of 1 point.
We need to calculate the cost of 1 point for a position in EURGBP.
Position type: long (Buy).
Position volume: 1 lot (100,000 units of the base currency).
Current price: 0.8365.
Account currency: USD.
<Cost of 1 point> = (100,000 * (0.8365 + 0.0001)) - (100,000 * 0.8365) = 10.00 GBP
Due to the difference between the account currency and the asset base currency, you have to convert this number into USD. To do this, multiply it by the current rate of GBPUSD.
10.00 GBP * 1.5417 = 15.47 USD
You can calculate the cost of 1 point for positions in any instrument by using the Trading Calculator tool.