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 for a Nano account a trader will count the number of pips that a forex pair has moved and multiply the number of pips with $0.01. $0.01 is the pip value when trading Nano lots.

1 pip is the smallest currency pair movement used when trading 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 - 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* $0.01 per pip = $0.01

Therefore, 1 pip move for Nano lot is equivalent to $0.01 dollars

If the trade moves in the direction of the trade, the trader will make a profit of $0.01 dollars. If the trade moves against the direction of the trade, the 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 pip = $0.5

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

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

Example 2: 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* $0.01 per pip = $1

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

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

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