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

How to Calculate Pips for a Standard Account

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

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

1 pip movement when trading Standard lots is equivalent to $10 (100,000 units of currency * 0.0001 = $10 )

For Example if EURUSD moves from 1.1000 to 1.1001 this is equal 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* $10 per pip = $10

Hence, 1 pip movement for Standard lot is equivalent to $10 dollars

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

The profit or loss will be:

1.1050 - 1.1000 = 50 pips

50 pip* $10 per pip = $500

Hence, 50 pips move for Standard lot is equal to $500 dollars

If the trade moves in direction of the trade, the trader will make a profit of $500 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $500.

Example 3: for Example if EURUSD moves from 1.1000 to 1.1100 this is equivalent to 100 pips - 1 pip is the 4th decimal place in the fx quote.

The profit or loss will be:

1.1100 - 1.1000 = 100 pips

100 pip* $10 per pip = $1000

Hence, 100 pips move for Standard lot is equal to $1000 dollars

If the trade moves in direction of the trade, the trader will make a profit of $1000 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $1000 dollars.

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