How Do I Count Pips in MT4 for Cent Account Cent Lots?
How to Calculate Pips for a Cent Account
The forex tutorial below explaining 3 example of how to calculate forex pips in a Cent account when trading Cent lots and how to calculate profits and losses when trading Cent lots in Forex.
1 pip is the smallest currency pair movement used when trading currencies.1 pip move when trading Cent lots is equal to $0.01 or 1 Cent dollars (100 Units of currency * 0.0001 = $0.01 or 1 Cent )
For Example if EURUSD moves from 1.1000 to 1.1001 this is equivalent to 1 pip - 1 pip is the fourth decimal point in the currency quote.
The profit or loss will be:
1.1001 - 1.1000 = 1 pip
1 pip* $0.01 or 1 Cent per pip = $0.01 or 1 Cent
Hence, 1 pip move for Cent lot is equivalent to $0.01 or 1 Cent dollars
If the trade moves in the direction of the trade, the trader will make a profit of $0.01 or 1 Cent dollars. If the trade moves against the direction of the trade, the trader will make a loss of $0.01 or 1 Cent dollars.
Example 2: for Example if EURUSD moves from 1.1000 to 1.1050 this is equal to 50 pips - 1 pip is the 4th decimal place in the forex quote.
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 trade moves in the direction of the trade, the trader will make a profit of $0.5 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $0.5 dollars.
Example 3: for Example if EURUSD moves from 1.1000 to 1.1100 this is equivalent to 100 pips - 1 pip is the fourth decimal place in the forex quote.
The profit or loss will be:
1.1100 - 1.1000 = 100 pips
100 pip* $0.01 or 1 Cent per pip = $1
Hence, 100 pips move for Cent lot is equal to $1 dollar
If the trade moves in the direction of the trade, the trader will make a profit of $1 dollar. If the trade moves against the direction of the trade, the trader will make a loss of $1 dollar.
How Do I Count Pips in MT4 for Cent Account trading Cent Lots
