Trade Forex Trading

A Detailed Walkthrough on Calculating Forex Profit and Loss for a Mini Account

How to Calculate Forex Profit and Loss in a Mini Account

To figure out how much money you've gained or lost in forex with a Mini account, you need to count how many pips the forex pair has changed, and then multiply that pip number by $1. $1 is the value of each pip when trading forex with Mini lots.

The smallest fluctuation in a currency pair's value, which traders utilize during currency trading, is defined as one pip.

1 pip move when trading Mini lots/contracts is equivalent to $1 (10,000 fx currency units * 0.0001 = $1)

Take EUR/USD from 1.2000 to 1.2001. That counts as one pip. It's the fourth digit after the decimal.

The profit or loss will be:

1.2001 - 1.2000 = 1 pip

1 pip* $1 per 1 pip = $1

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

If the trade transaction moves in the direction of the FX trade, the trader will make a profit of $10 dollars. If the trade transaction heads against the direction of the FX trade, the trader will accrue a loss of $10 dollars.

Let's say EUR/USD moves from 1.2000 to 1.2050 - that's a 50-pip move. One pip is the fourth decimal place in a currency quote.

The profit or loss will be:

1.2050 - 1.2000 = 50 pips

50 pip* $1 per 1 pip = $50

Hence, 50 pips move for Mini contract/lot is equivalent to $50

If the executed trade moves favorably aligned with the direction of the FX transaction, the trader earns a profit of fifty dollars ($50). Conversely, if the FX transaction moves against the direction of the trade execution, the FX trader incurs a loss of fifty dollars ($50).

For example, if the EUR/USD currency pair rises from 1.2000 to 1.2100, this equates to a movement of 100 pips. A pip represents the fourth decimal place in forex pricing.

The profit or loss will be:

1.2100 - 1.2000 = 100 pips

100 pip* $1 per 1 pip = $100

Therefore, 100 pips move for Mini contract/lot is equivalent to $100

If the trade transaction moves in favor of the FX trade, the trader stands to gain a profit of $100. Conversely, if it moves against the transaction direction, the FX trader incurs a loss of $100.

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

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