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How Do I Calculate Profit & Loss in a Nano Account Explained

How to Calculate Profit & Loss in a Nano Account

To calculate the profit or loss per 1 pip for a Nano trading account one will have to count the amount of pips that a forex pair has moved and then multiply this number of pips with $0.01. $0.01 is the pip size value when trading Nano lots.

The smallest measure of change observable in a currency exchange rate, known as a pip, is utilized in forex trading.

A one-pip movement when trading at the Nano lot size corresponds to a value of $0.01 (calculated as 100 units of currency * 0.0001 = $0.01).

One pip is the fourth decimal place in the forex currency quote. For instance, a change in the EUR/USD pair from 1. 2000 to 1. 2001 represents one pip.

The profit or loss will be:

1.2001 - 1.2000 = 1 pip

1 pip* $0.01 per 1 pip = $0.01

Hence, 1 pip move for Nano lot/contract is equivalent to $0.01

If the trade moves in the direction of the FX trade, the online trader will make a profit of $0.01 dollars. If the FX trade heads against the direction of the trade, the FX trader will make a loss of $0.01 dollars.

Consider, for instance, the EUR/USD forex pair, which moves from 1. 2000 to 1. 2050. This represents 50 pips, where one pip is the fourth decimal place in the currency quote.

The profit or loss will be:

1.2050 - 1.2000 = 50 pips

50 pip* $0.01 per 1 pip = $0.5

Hence, 50 pips move for Nano lot is equivalent to $0.5

If the FX trade goes your way, the trader earns $0.50 profit. When it goes against you, the loss hits $0.50 too.

Example: EURUSD from 1.2000 to 1.2100 equals 100 pips. One pip is the fourth decimal in the quote.

The profit or loss will be:

1.2100 - 1.2000 = 100 pips

100 pip* $0.01 per 1 pip = $1

Therefore, 100 pips move for Nano lot is equal to $1 dollar

When an FX trade progresses in its desired market direction, the trader earns a profit of 1 dollar. Conversely, if the trade moves against expectations, the trader incurs a loss of 1 dollar.

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

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