How Do You Read Forex Pips for Mini Account?
A forex pips is the smallest price movement in the exchange rate of a forex pair, the forex pip is used to calculate forex profits and losses when trading the online forex market.
How to Interpret Forex Pips When Trading Mini Lots
In a forex exchange rate quote the pip is the fourth 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 Mini lot the pip movement is equal to $1 as shown on the trading examples below:
How to Read Forex Pip value in a Mini Account
To calculate the forex profit or loss for a Mini forex account a trader will count the number of pips that a currency pair has moved and multiply the number of pips with $1. $1 is the pip value when trading forex Mini lots.
1 pip is the smallest currency pair movement used when trading forex currencies.1 pip movement when trading Mini lots is equal to $1 dollars (10,000 units of currency * 0.0001 = $1 )
How to Calculate Forex Profit and Loss in a Mini Account
Forex Example 1: if EURUSD moves from 1.3000 to 1.3001 this is equal to 1 pip - 1 pip is the fourth decimal place in the currency quote.
The profit or loss will be:
1.3001 - 1.3000 = 1 pip
1 pip* $1 per pip = $1
Therefore, 1 pip move for Mini lot is equal to $1 dollars
If the trade moves in direction of the trade, the trader will make a profit of $10 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $10 dollars.
Forex Example 2: for Example if EURUSD moves from 1.3000 to 1.3050 this is equal to 50 pips - 1 pip is the fourth decimal place in the currency quote.
The profit or loss will be:
1.3050 - 1.3000 = 50 pips
50 pip* $1 per pip = $50
Therefore, 50 pips move for Mini lot is equal to $50 dollars
If the trade moves in direction of the trade, the trader will make a profit of $50 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $50 dollars.
Forex Example 3: for Example if EURUSD moves from 1.3000 to 1.3100 this is equal to 100 pips - 1 pip is the fourth decimal place in the currency quote.
The profit or loss will be:
1.3100 - 1.3000 = 100 pips
100 pip* $1 per pip = $100
Therefore, 100 pips move for Mini lot is equal to $100 dollars
If the trade moves in direction of the trade, the trader will make a profit of $100 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $100 dollars.
How to calculate Mini Account Pip Value and Profit and Loss in a Mini Forex Trading Account
