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 & losses when trading the online forex market.

How to Interpret Forex Pips When Cent Lots

In a exchange rate quote the pip is the 4th decimal in the currency price quote - for example 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 as shown on the examples below:

How to Read Forex Pip value in a Cent Account

To calculate the profit or loss for a Cent account a trader will count the number of pips that a forex pair has moved and multiply the number of pips with $0.01 dollars or 1 Cent. $0.01 or 1 Cent is the pip value when trading forex Cent lots.

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

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

Example 1: if EURUSD moves from 1.3000 to 1.3001 this is equivalent to 1 pip - 1 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 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 moves in the direction of the trade, the trader will earn a profit of $0.01 or 1 Cent. If the trade moves against the direction of the trade, 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 - 1 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 pip = $0.5 dollars

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

If the trade moves in the direction of the trade, the trader will earn a profit of $0.5. If the trade moves against the direction of the trade, the 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 - 1 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 pip = $1

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

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