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.

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

1 pip move when trading Nano lots is equal to $0.01 (100 Units of currency * 0.0001 = $0.01 )

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

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 is equivalent to $0.01 dollars

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 moves against the direction of the trade, the FX trader will make a loss of $0.01 dollars.

Example 2: for Example if EURUSD moves from 1.2000 to 1.2050 this is equal to 50 pips - 1 pip is the 4th 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 dollars

If the FX trade moves in the direction of the trade, the online trader will make a profit of $0.5 dollars. If the FX trade moves against the direction of the trade, the FX trader will make a loss of $0.5.

Example 2: for Example if EURUSD moves from 1.2000 to 1.2100 this is equal to 100 pips - one pip is the 4th decimal place in the forex 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

If the trade moves in the direction of the FX trade, the online trader will make a profit of $1 dollars. If the FX trade moves against the direction of the trade, the FX trader will accrue a loss of $1 dollar.

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

Learn More Topics & Lessons:

Trade Forex Trading

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

How to Calculate Profit & Loss in a Nano Account