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How Do I Count Pips in MT4 for Micro Account Trading Micro Lots?

How to Calculate Pips for a Micro Trading Account

The tutorial below shows three examples: how to calculate pips in a micro account, and how to figure out profits and losses when trading micro lots in forex.

In forex trading, 1 pip represents the smallest or minimum movement of a currency pair, which traders reference when exchanging forex currencies.

A single pip movement when trading Micro lots translates to a value of $0.10 (calculated as 1,000 currency units multiplied by 0.0001).

For example, if the EUR USD forex pair moves from 1.1000 to 1.1001, this is the same as 1 pip, and one pip is the 4th decimal place in the forex price.

The profit or loss will be:

1.1001 - 1.1000 = 1 pip

1 pip* $0.1 per 1 pip = $0.1

Hence, 1 pip move for micro lot is equivalent to $0.1

If the trade moves favorably toward the intended path, the trader realizes a gain of $0.1. However, if the trade proceeds against the designated direction, the trader incurs a setback of $0.1 dollars.

Example 2: For Instance if EURUSD goes from 1.1000 to 1.1050, that's like 50 pips - 1 pip is the number in the 4th spot after the decimal in the fx price.

The profit or loss will be:

1.1050 - 1.1000 = 50 pips

50 pip* $0.1 per 1 pip = $5

Therefore, 50 pips move for micro lot/contract is equivalent to $5

If the trade transaction moves in direction of the trade transaction, the trader will earn a profit of $5. If the trade transaction heads against the direction of the trade transaction, the trader will make a loss of $5.

Example 2: For instance, if the EURUSD exchange rate moves from 1.1000 to 1.1100, this constitutes a 100-pip change - where one pip is represented by the fourth decimal place in the forex quotation.

The profit or loss will be:

1.1100 - 1.1000 = 100 pips

100 pip* $0.1 per 1 pip = $10

Therefore, 100 pips move for micro lot is equivalent to $10

For each trade transaction aligning with the intended direction, traders secure a profit of $10. Conversely, when a trade moves against the intended direction, it results in a loss of $10.

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

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