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

How to Calculate Pips for a Micro Account

The tutorial below explaining 3 example of how to calculate pips in a micro account when trading micro lots and how to calculate profits and losses when trading micro lots in Forex.

1 pip is the smallest forex pair movement used when trading currencies.

1 pip move when trading Micro lots is equal to $0.1 dollars (1,000 units of currency * 0.0001 = $0.1 )

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 forex quote.

The profit or loss will be:

1.1001 - 1.1000 = 1 pip

1 pip* $0.1 per pip = $0.1

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

If the trade moves in direction of the trade, the trader will make a profit of $0.1. If the trade moves against the direction of the trade, the trader will make a loss of $0.1.

Example 2: For Example if EURUSD moves from 1.1000 to 1.1050 this is equal to 50 pips - 1 pip is the fourth decimal place in the currency quote.

The profit or loss will be:

1.1050 - 1.1000 = 50 pips

50 pip* $0.1 per pip = $5

Therefore, 50 pips move for micro lot is equal to $5

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

Example 2: for Example if EURUSD moves from 1.1000 to 1.1100 this is equivalent to 100 pips - 1 pip is the fourth decimal point in the forex quote.

The profit or loss will be:

1.1100 - 1.1000 = 100 pips

100 pip* $0.1 per pip = $10

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

If the trade moves in direction of the trade, the trader will make a profit of $10. If the trade moves against the direction of the trade, the trader will make a loss of $10.

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