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 and Analyze Forex Pips When Cent Lots

In a exchange rate quote the pip is the 4th decimal point in the price quote - e.g. a EURUSD quote of 1.3000 if it moves to 1.3001 this is a movement of 1 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 calculate the profit or loss for a Cent trading account one will count the amount of pips that a forex pair has moved & then multiply this number with $0.01 dollars or 1 Cent. $0.01 or 1 Cent is the pip size value when trading forex Cent lots.

1 pip is the smallest currency pair movement used when trading the currencies. 1 pip(point) move when trading Cent lots is equal to $0.01 dollars or 1 Cent (100 Units of currency * 0.0001 = $0.01 dollars or 1 Cent )

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

Example 1: if EURUSD moves from 1.3000 to 1.3001 this is equivalent to a pip - one pip is the fourth decimal point in the 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 trade transaction moves in the direction of the FX trade, the trader will earn a profit of $0.01 or 1 Cent. If the FX trade moves against the direction of the trade transaction, the trader will make a loss of $0.01 or 1 Cent.

Example 2: for Example if EURUSD moves from 1.3000 to 1.3050 this is equal to 50 pips - one pip is the 4th decimal place 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 trade transaction moves in the direction of the FX trade, the trader will earn a profit of $0.5. If the FX trade moves against the direction of the trade transaction, the FX trader will make a loss of $0.5.

Example 3: for Example if EURUSD moves from 1.3000 to 1.3100 this is equal to 100 pips - a pip is the 4th decimal place in the forex quote.

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 equal to $1 dollar

If the FX trade moves 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

Learn More Lessons and Tutorials and Topics:

• Bollinger Band FX Trading Buy Sell Signal
• Where is US 100 in MT5 Platform?
• SMI20 Trade Strategy Guide Tutorial Download
• What is NETH25 Stock Index MT4 Chart?
• Coppock Curve MetaTrader 5 Technical Analysis in Forex Trading
• Chaikins Money Flow Automated Trade Forex Robot Expert Advisor
• What are Bollinger Percent B Buy and Sell FX Trade Signals?
• How Can I Use MetaTrader 4 Trend Trigger Factor Technical Indicator?