Forex glossary
USD/JPY
USD/JPY states Japanese yen per US dollar. USD is the base and JPY the quote currency. Rate expectations and capital flows can affect it; pip cash value and account-currency P/L require a specified quantity and conversion rate.
Illustrative example
How does it work in practice?
In a hypothetical USD/JPY position of 1,000 USD, the rate rises from 150.00 to 150.01 JPY per USD. One pip produces 10 JPY price P/L before costs and account-currency conversion.
A case to work through
One result, two conversion rates
Model: P/L is 300 JPY; compare conversion at 150 and 160 JPY/USD, without fees.
- At 150, the result is worth 2 USD.
- At 160, it is worth 1.875 USD; the same JPY amount has a different USD valuation.
What follows? State the conversion rate with account P/L.
Example boundary: These are alternative valuations, not two simultaneous transactions.
A useful distinction
USD/JPY / EUR/JPY
EUR/JPY has EUR base quantity; USD/JPY has USD base quantity, while both quote JPY.
Check your understanding
Separate a fixed JPY result from its changing USD value.
Show the answer and explanation
3 USD
450 / 150 = 3 USD.
Pair units and result currency
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Related terms
Sources and documentation
- 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: - Saxo: major-pair convention
A common retail majors list rather than legal margin categories.
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.