Trade Forex Trading

How Do I Count Pips in MT4 for Cent Account Cent Lots?

How to Calculate Pips for a Cent Account

This forex guide shows three examples for pips in a cent account with cent lots. It covers profit and loss for those trades too.

One pip marks the smallest change in a currency pair. Traders use it for forex trades. For cent lots, a one-pip move equals $0.01 or one cent.

For Example if EURUSD moves from 1.1000 to 1.1001 - this is equivalent to one pip - a pip is the 4th decimal point in the forex currency quote.

The profit or loss will be:

1.1001 - 1.1000 = 1 pip

1 pip* $0.01 or 1 Cent per 1 pip = $0.01 or 1 Cent

Therefore, 1 pip move for Cent lot/contract is equivalent to $0.01 dollars or 1 Cent dollars

If the FX trade goes your way, you earn one cent or $0.01. If it goes against you, you lose one cent or $0.01.

The forex quote's fourth decimal place is called a pip. For instance, if the EUR/USD currency pair moves from 1. 1000 to 1. 1050, this is equivalent to 50 pips.

The profit or loss will be:

1.1050 - 1.1000 = 50 pips

50 pip* $0.01 or 1 Cent per pip = $0.5

Hence, 50 pips move for Cent lot is equal to $0.5 dollars

If the FX trade moves in the direction of the trade transaction, the FX trader will make a profit of $0.5 dollars. If the trade transaction heads against the direction of the FX trade, the trader will accrue a loss of $0.5 dollars.

Example 3: If, for instance, the EURUSD pair shifts from 1. 1000 to 1. 1100, this represents 100 pips, where the fourth decimal place in the forex quotation is one pip.

The profit or loss will be:

1.1100 - 1.1000 = 100 pips

100 pip* $0.01 or 1 Cent per 1 pip = $1

Therefore, 100 pips move for Cent lot/contract is equivalent to $1 dollar

Should the executed trade move favorably in the direction of the FX transaction, the trader realizes a profit of one dollar ($1). Conversely, if the transaction moves contrary to the established FX trade direction, the trader incurs a loss amounting to one dollar ($1).

How Do I Count Pips in MT4 for Cent Account trading Cent Lots

More Tutorials & Courses:

Forex Broker