Trade Forex Trading

How Do You Read Pips for Micro Account?

A pip is the smallest amount the exchange rate can move for a forex pair, and it's used to figure out how much money you've made or lost when trading online.

How to Interpret/Analyze Pips When Trading Micro Lots

In a price quote for currencies the pip is shown in the fourth decimal place - like if EUR/USD is at 1.3000 and then changes to 1.3001, that's a 1 pip change.

Currency pair movement in fx is calculated using pips, when trading one micro lot the pip movement is equivalent to $0.1 as is shown on the trading examples:

How to Read Pip Value in a Micro Trading Account

To calculate the profit or loss per pip for a Micro account a trader will count the number of pips that a forex currency pair has moved & then multiply the number with $0.1. $0.1 is the pip value when trading micro lots.

1 pip is the minimum/minimum forex pair movement which is used when trading forex currencies.

In micro lot trading, a movement of 1 pip equates to $0.1 (1,000 units of currency * 0.0001 = $0.1).

How to Calculate Profit and Loss in a Micro Account

Example 1: if EUR USD currency pair heads from 1.3000 to 1.3001 - this is equivalent to 1 pip - one pip is the 4th decimal place in the fx quote.

The profit or loss will be:

1.3001 - 1.3000 = 1 pip

1 pip* $0.1 per 1 pip = $0.1

Therefore, 1 pip move for micro lot is equal to $0.1 dollars

If a trade goes your way, you gain $0.10 per unit. If it moves against you, you lose $0.10 per unit.

For example, if the EUR/USD moves from 1.3000 to 1.3050, this represents a shift of 50 pips, since one pip is considered the fourth decimal place in the forex quote.

The profit or loss will be:

1.3050 - 1.3000 = 50 pips

50 pip* $0.1 per 1 pip = $5

Hence, 50 pips move for micro lot is equal to $5 dollars

If a trade moves in favor of the transaction, the trader stands to gain $5. Conversely, if the trade moves against the initial direction, the trader incurs a loss of $5.

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

The profit or loss will be:

1.3100 - 1.3000 = 100 pips

100 pip* $0.1 per 1 pip = $10

Hence, 100 pips move for micro lot is equivalent to $10 dollars

If the trade goes in your favor, you earn a $10 profit. If it moves against you, you lose $10.

How to calculate Micro Account Pip Value and Profit and Loss in a Micro Account

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