OXY Pip Value Calculator – Occidental Petroleum

Pip value tells you exactly how much money you gain or lose for each minimum price movement. For OXY, the formula is:

Pip Value = Pip Size × Contract Size

With OXY's pip size set at 0.01 and a contract size of 1, the calculation is:

0.01 × 1 = $0.01 per pip, per contract

Wait — that contradicts the $1.00 figure mentioned above. Here's the distinction: brokers often quote pip value in full-point terms (a 1.00 price move), not just the minimum tick. A full 1-point move on OXY equals 100 pips × $0.01 = $1.00. That $1.00 per point is the number most platforms surface, and it's the figure you'll use for position sizing. Pulsar Terminal's built-in pip value calculator auto-fills OXY's contract size and pip value, eliminating this confusion entirely.

Assume OXY is trading at $68.50 and you buy 10 contracts. The typical spread is 0.3 pips ($0.003), so your entry cost is minimal. Now OXY moves from $68.50 to $70.00 — a 1.50-point move.

1.50 points × $1.00 pip value × 10 contracts = $15.00 profit

Small? Yes — because the contract size is 1 share per contract. Scale to 1,000 contracts and that same 1.50-point move generates $1,500. This is why contract size is the most important variable in the equation, not pip size. OXY's price history shows significant volatility: during the 2020 oil crash, the stock dropped from $46 to under $9 in roughly six weeks. At 1,000 contracts, every $1.00 move represented $1,000 in P&L — in either direction.

Risk management starts with a single number: how much can you lose per trade? Without knowing pip value, that question has no answer.

Here's the practical framework. Set your maximum loss per trade — say $200. OXY pip value is $1.00 per point per contract. Your stop-loss is 2.00 points away from entry.

$200 ÷ (2.00 × $1.00) = 100 contracts maximum

Trading 150 contracts on that setup puts $300 at risk — 50% beyond your limit. The math is unforgiving. OXY trades with a 0.3-pip spread, which costs $0.003 per contract on entry. At 100 contracts, that's $0.30 in spread cost — negligible. At 10,000 contracts, it's $30.00 before the trade moves a single tick. Position size amplifies everything: profit, loss, and transaction costs equally.