<h2>Conversion Ratio</h2>
<p>In the realm of trading, the <strong>conversion ratio</strong> is a crucial concept that helps traders understand the relationship between the base and quote currencies in a Forex pair. It's the number of units of the base currency that one unit of the quote currency can buy.</p>

<h2>How It Works</h2>
<p>The conversion ratio is determined by the current exchange rate between the two currencies. For instance, if the EUR/USD pair is trading at 1.2000, the conversion ratio is 1.2000. This means that 1 EUR can buy 1.2000 USD, or conversely, 1 USD can buy 0.8333 EUR (1/1.2000).</p>
<p>In the context of trading with STB Provider on the MetaTrader 5 platform, the conversion ratio is used to calculate the value of a pip, which is the smallest price change that a currency can make. For example, if you're trading EUR/USD with a leverage of 1:300, a pip (0.0001) is worth $10 with a conversion ratio of 1.2000.</p>

<h2>Why It Matters for Traders</h2>
<p>The conversion ratio is vital for traders as it helps them:</p>
<ul>
  <li>Calculate the value of their trades in their base currency.</li>
  <li>Determine the risk-reward ratio for their trades.</li>
  <li>Understand the potential profit or loss for each pip movement in the market.</li>
</ul>

<h2>Example</h2>
<p>Let's say you're trading EUR/USD with STB Provider, and the conversion ratio is 1.2000. You open a long position of 100,000 EUR/USD at 1.2000. This means you're buying 120,000 USD with your 100,000 EUR.</p>
<p>If the price moves 50 pips in your favor (to 1.2050), your profit in USD would be 50 * 100,000 * 0.0001 = $500. However, to find your profit in EUR, you'd need to convert it using the conversion ratio: $500 / 1.2000 = €416.67.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The conversion ratio is the number of units of the base currency that one unit of the quote currency can buy.</li>
  <li>It's calculated using the current exchange rate between the two currencies.</li>
  <li>Understanding the conversion ratio is crucial for calculating the value of trades, risk-reward ratios, and potential profits or losses.</li>
</ul>