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

How to Calculate Pips for a Standard Account

This tutorial covers three ways to count pips in a standard account with standard lots. It also explains profit and loss math for those trades in forex.

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

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

Say EUR/USD moves from 1.1000 to 1.1001 - that's 1 pip. One pip is the fourth decimal point in a forex quote.

The profit or loss will be:

1.1001 - 1.1000 = 1 pip

1 pip* $10 per 1 pip = $10

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

Should the trade move in the predicted direction of the transaction, the trader will realize a profit of $10. Conversely, if the trade moves contrary to the predicted path, the trader will incur a loss amounting to $10.

For instance, if the EUR/USD movement shifts from 1.1000 to 1.1050, this translates to 50 pips, with one pip representing the fourth decimal place in a forex quote.

The profit or loss will be:

1.1050 - 1.1000 = 50 pips

50 pip* $10 per 1 pip = $500

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

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

Example 3: e.g. if the EUR USD moves from 1.1000 to 1.1100 this is equivalent to 100 pips - one 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 1 pip = $1000

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

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

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

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