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Cent Account P/L Calc: Profit Loss Guide

How to Calculate Profit & Loss in a Cent Trade Account

To determine the profit or loss on a Cent trading account, a trader calculates the total number of pips a forex currency pair has moved and then multiplies that figure by either $0.01 or 1 Cent. This $0.01 or 1 Cent represents the value of one pip when trading in Cent lots or contracts.

A single pip represents the smallest transactional movement in a forex pair utilized by currency traders.

A movement of 1 pip while trading Cent lots/contracts equals $0.01 or 1 cent (calculated as 100 units of a currency x 0.0001 = $0.01 or 1 cent).

For example, if the EUR USD pair moves from 1.2000 to 1.2001, that's 1 pip: a pip is the fourth number after the decimal in the forex price.

The profit or loss will be:

1.2001 - 1.2000 = 1 pip

1 pip* $0.01 or 1 Cent per 1 pip = $0.01 or 1 Cent

Hence, 1 pip move for Cent contract/lot is equivalent to $0.01 or 1 Cent dollars

If the transaction moves in the intended direction, the trader realizes a profit equivalent to $0.01, or 1 Cent. Conversely, if the transaction moves contrary to the intended direction, the trader incurs a loss also valued at $0.01, or 1 Cent.

For instance: if the EUR USD goes from 1.2000 to 1.2050, that's 50 pips, and one pip is the fourth number after the dot in the forex price.

The profit or loss will be:

1.2050 - 1.2000 = 50 pips

50 pip* $0.01 or 1 Cent per pip = $0.5

Hence, 50 pips move for Cent contract/lot is equivalent to $0.5 dollars

If the trade progresses in favor of the executed transaction, the trader will gain a profit of $0.5. Conversely, if the trade moves against the transaction direction, a loss of $0.5 will be incurred.

Example 3: for Example if EUR USD currency pair heads from 1.2000 to 1.2100 this is equivalent to 100 pips - a pip is the 4th decimal place in the fx quote.

The profit or loss will be:

1.2100 - 1.2000 = 100 pips

100 pip* $0.01 or 1 Cent per 1 pip = $1

Therefore, 100 pips move for Cent lot is equal to $1 dollars

If market movement aligns with the trade's direction, the trader earns $1 in profit. Conversely, if the market moves against it, the trader incurs a $1 loss.

How to calculate trading profits & losses of currency trades for a Cent account.

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