Forex glossary
GBP/JPY
GBP/JPY quotes Japanese yen per British pound. GBP is the base currency and JPY the quote currency. Volatility and a protective order's distance depend on observed data and the trade plan; a nickname does not determine its risk.
Illustrative example
How does it work in practice?
In a hypothetical long position of 1,000 GBP, GBP/JPY falls from 190.00 to 189.50 JPY per GBP. The price loss is 500 JPY before costs and conversion into the account currency.
A case to work through
A wider distance, unchanged budget
Model: budget is 3,000 JPY; exit distance rises from 0.50 to 0.75 JPY/GBP, without costs.
- Original quantity is 3,000/0.50 = 6,000 GBP.
- New quantity is 3,000/0.75 = 4,000 GBP.
What follows? Recalculate quantity rather than retain the previous volume.
Example boundary: An ordinary stop can fill beyond the plan; contract minimums constrain quantity.
A useful distinction
GBP/JPY / Position Sizing
Position sizing selects quantity; GBP/JPY supplies the currencies for this application.
Check your understanding
Reduce quantity when assumed loss per unit increases.
Show the answer and explanation
3,000 GBP
2,400 / 0.80 = 3,000 GBP.
Pair units and result currency
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Related terms
Sources and documentation
- ECB: euro reference exchange rates
Currency units and reference quotations, not executable prices or invented case datasets.
- OANDA Corporation: Do you offer micro lots?
OANDA Corporation documentation states the 100,000, 10,000 and 1,000 base-unit convention and distinguishes unit-based from lot-based volume entry.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.