Trade Forex Trading

How Do You Read Forex Pips for Cent Account?

A pips is the smallest price movement in the exchange rate of a fx pair, the pip is used to calculate forex profits and losses when trading the online forex market.

How to Interpret/Analyze Forex Pips When Cent Lots

In an exchange rate quote, a pip is the fourth decimal. For EURUSD from 1.3000 to 1.3001, that's one pip.

Currency pair movement in forex trading is calculated using pips, when trading one Cent lot the pip movement is equivalent to $0.01 or 1 Cent like is shown on the exemplifications below:

How to Interpret/Analyze Forex Pip value in a Cent Account

To compute the outcome, profit or loss, for a Cent trading account, one determines the total pips a currency pair has shifted and then multiplies this count by $0.01, or one Cent. This $0.01 value represents the pip size when trading Forex in Cent lots.

One pip marks the tiniest shift in a currency pair during trades. For Cent lots, a one-pip move equals $0.01 or one cent. This comes from 100 units times 0.0001.

How to Calculate Forex Profit and Loss in a Cent Trade Account

Example: If EURUSD moves from 1.3000 to 1.3001, that's one pip. A pip is the fourth decimal in a currency quote.

The profit or loss will be:

1.3001 - 1.3000 = 1 pip

1 pip* $0.01 or 1 Cent per 1 pip = $0.01 or 1 Cent

Hence, 1 pip move for Cent lot is equivalent to $0.01 or 1 Cent dollars

If the trading transaction aligns with the direction of the FX trade, the trader will profit $0.01 (1 cent). Conversely, if the FX trade moves against the transaction, the trader will incur a loss of $0.01 (1 cent).

Example 2: For instance, if EURUSD changes from 1.3000 to 1.3050, this is equivalent to a 50-pip movement - a pip being defined as the fourth digit after the decimal point in the currency quote.

The profit or loss will be:

1.3050 - 1.3000 = 50 pips

50 pip* $0.01 or 1 Cent per 1 pip = $0.5 dollars

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

If the FX trade goes your way, you gain $0.5 profit. If it goes against you, you lose $0.5.

Example 3: For example, if the EURUSD goes from 1.3000 to 1.3100, that's 100 pips - a pip is the fourth number after the decimal point in the forex price.

The profit or loss will be:

1.3100 - 1.3000 = 100 pips

100 pip* $0.01 or 1 Cent per 1 pip = $1

Therefore, 100 pips move for Cent lot is equivalent to $1 dollar

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

How to calculate Cent Account Pip Value and Profit and Loss in a Cent Forex Account

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