Phillips 66 (PSX) Pip Value Calculator

The formula is straightforward: Pip Value = Pip Size × Contract Size × Number of Contracts. For PSX, that means 0.01 × 1 × number of contracts. With a single contract, each 0.01 move in the PSX price equals exactly $1.00 in profit or loss. Scaling to 10 contracts raises that exposure to $10.00 per pip. Because PSX is quoted in USD and the contract size is 1 share-equivalent, no currency conversion is required — the calculation stays clean. Pulsar Terminal's built-in pip value calculator auto-fills PSX's contract size and pip value, eliminating manual entry errors before execution.

Counterintuitively, a stock priced near $100 per share can generate smaller per-pip dollar risk than many forex majors — PSX's $1.00 pip value is fixed regardless of the stock's market price. Consider a trade entered at $115.50 with a stop-loss at $114.50 — a 100-pip stop. On 5 contracts, that stop represents $500.00 in maximum risk (100 pips × $1.00 × 5 contracts). The typical spread of 0.5 pips adds $0.50 per contract to the effective entry cost. At 5 contracts, the spread cost alone is $2.50 — a figure worth factoring into any short-term trade. PSX saw notable volatility through 2023 as energy sector repricing accelerated, with intraday ranges frequently exceeding 150 pips, making precise pip value knowledge operationally relevant.

Position sizing without accurate pip value data produces inconsistent risk per trade. A trader risking 1% of a $20,000 account — $200 — can hold exactly 2 contracts on a 100-pip stop ($1.00 × 100 × 2 = $200). Shift to 3 contracts and risk jumps 50% to $300, breaching the target. The math is unforgiving. PSX's $1.00 pip value makes these calculations linear and auditable, which is why prop firm traders — who face strict daily drawdown limits — favor instruments with clean, predictable pip structures. Defining risk in dollar terms before order placement, not after, is the operational standard among systematic traders.