How to Calculate Volatility 75 Index Pips,
How to Calculate Volatility 75 Index Pips
The Volatility 75 Index (VIX 75) is one of the most lucrative yet misunderstood synthetic indices in the trading world. Known for its explosive movements, V75 offers high risk—and even higher rewards. But here’s the truth: if you don’t know how to calculate your pip value properly, you’re gambling, not trading.
In this guide, we’ll break down how to calculate Volatility 75 Index pips, step-by-step, so you can manage risk like a pro. Whether you're trading manually or using a V75 EA bot, pip calculation is the foundation of solid risk management. Let's get into it.
What Are Pips in Volatility 75 Index?
A pip (percentage in point) is the smallest price change that a trading instrument can make. In forex, it's usually the fourth decimal point. But Volatility 75 is different.
On V75, a pip is usually calculated at the second decimal. For example, if V75 moves from 4021.55 to 4021.65, that’s a 1.0 pip move. Understanding this helps you measure both profit potential and loss exposure accurately.
Why Pip Value Matters
- Helps you size your trades correctly
- Determines your potential profit/loss
- Essential for stop loss and take profit levels
How to Calculate V75 Pips Manually
Let’s keep it simple. Here's the core formula used to calculate pip value for Volatility 75:
Pip Value = (Pip Size × Lot Size × Contract Size)
On Deriv, the default contract size for V75 is 1. So the actual pip value depends mostly on your lot size and how many decimal places you're using.
Example Calculation
If you open a trade with:
- Lot size = 0.001
- V75 moves from 4021.55 to 4021.65 (1 pip)
Then:
Pip Value = 0.01 × 0.001 × 1 = $0.00001 per pip
But remember, Deriv has specific tick size and multiplier settings behind the scenes, so the real pip value is shown in your MetaTrader 5 platform’s profit/loss area in dollars. Always confirm it before trading live.
Using a V75 Pip Calculator
Doing this manually every time can be exhausting. That's why pip calculators exist. You can find free tools online that help you calculate pip value based on:
- Lot size
- Index price
- Account currency
Read more about pip definitions on Investopedia.
Why Volatility 75 Requires Accurate Pip Calculation
This index moves fast. A miscalculated pip value can wipe your account in seconds. That’s why knowing your numbers isn’t optional—it’s survival.
Let’s say you're risking $30. If you don’t understand how many pips your stop loss covers, you’re leaving your account exposed.
Common Mistakes in Pip Calculation
- Using forex pip rules (V75 is not forex!)
- Ignoring decimal placement
- Wrong lot size assumptions
- Blindly copying other traders’ settings
How Lot Size Affects Pip Value on V75
This is where it gets real. Your pip value increases with your lot size. So a 0.01 lot trade will have 10x the pip value of a 0.001 lot trade.
Lot Size vs Pip Value Table
| Lot Size | Pip Value (approx) |
|---|---|
| 0.001 | $0.10 |
| 0.005 | $0.50 |
| 0.01 | $1.00 |
And when you’re working with low capital, you need to keep your pip value small to survive market noise.
Pro Tip: Use a Safe EA for Low Capital Traders
Manual trading isn’t for everyone. If you’re struggling with pip calculations, consider automating. Our Volatility 75 EA bot handles risk by calculating safe lot sizes and avoiding dangerous days.
This is especially useful for traders starting with $50 or less.
Recommended Tools
Related Reading
FAQ: Volatility 75 Pip Calculation
How many decimal places are used for V75?
Usually 2 decimals. So a move from 4021.55 to 4021.65 equals 1.0 pip.
Is pip calculation the same for forex and V75?
No. V75 uses different logic, and pip values are affected by Deriv’s synthetic pricing model.
How do I avoid blowing my account?
Keep pip value low with small lot sizes, and use a stop loss no wider than your account can handle.
Can I automate pip management?
Yes, our EA bot does this for you.
What’s the best lot size for $30?
Usually between 0.001 and 0.003. But it depends on your strategy and stop loss distance.
Final Thoughts: Know Your Pips or Lose Your Grip
Most traders ignore pip calculation—and that’s why they lose. You don’t have to be one of them. Take the time to understand pip math, use calculators when necessary, and never trade V75 blindly.
If you're serious about mastering Volatility 75, start by getting your pip values right every time. Or better yet, use a tool that does it for you.
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