How to Calculate Forex Profit and Loss in a Mini Account Explained

How to Calculate Forex Profit and Loss in a Mini Account

To calculate the forex profit or loss for a Mini account a trader will count the number of pips that a currency pair has moved and multiply the number of pips with $1. $1 is the pip value when trading forex Mini lots.

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

1 pip move when trading Mini lots is equal to $1 (10,000 units of currency * 0.0001 = $1 )

For Example if EURUSD moves from 1.2000 to 1.2001 this is equivalent to 1 pip - 1 pip is the fourth decimal point in the currency quote.

The profit or loss will be:

1.2001 - 1.2000 = 1 pip

1 pip* $1 per pip = $1

Therefore, 1 pip move for Mini lot is equivalent to $1 dollars

If the trade moves in the 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.

Example 2: for Example if EURUSD moves from 1.2000 to 1.2050 this is equivalent to 50 pips - 1 pip is the fourth decimal point in the currency quote.

The profit or loss will be:

1.2050 - 1.2000 = 50 pips

50 pip* $1 per pip = $50

Therefore, 50 pips move for Mini lot is equivalent to $50 dollars

If the trade moves in the direction of the trade, the trader will make a profit of $50 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $50.

Example 3: for Example if EURUSD moves from 1.2000 to 1.2100 this is equal to 100 pips - 1 pip is the 4th decimal place in the forex quote.

The profit or loss will be:

1.2100 - 1.2000 = 100 pips

100 pip* $1 per pip = $100

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

If the trade moves in the direction of the trade, the trader will make a profit of $100 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $100 dollars.

How to calculate profits and losses of currency trades for a Mini account.