How Do You Read Pips for Standard Account?
A pips is the smallest price movement in the exchange rate of a forex pair, the pip is used to calculate forex profits & losses when trading the online forex market.
How to Interpret Forex Pips When Standard 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 is calculated using pips, when trading one Standard lot the pip movement is equivalent to $10 as shown on the trading examples below:
How to Read Pip value in a Standard Account
To calculate the profit or loss for a Standard account a trader will count the number of pips that a forex pair has moved & multiply the number of pips with $10. $10 is the pip value when trading fx Standard lots.
1 pip is the smallest currency pair movement used when trading forex currencies.1 pip movement when trading Standard lots is equal to $10 dollars (100,000 units of currency * 0.0001 = $10 )
How to Calculate Forex Profit and Loss in a Standard Account
Example 1: if EURUSD moves from 1.3000 to 1.3001 this is equal to 1 pip - 1 pip is the 4th decimal place in the fx quote.
The profit or loss will be:
1.3001 - 1.3000 = 1 pip
1 pip* $10 per pip = $10
Hence, 1 pip movement for Standard lot is equal to $10 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.
Example 2: for Example if EURUSD moves from 1.3000 to 1.3010 this is equal to 10 pips - 1 pip is the fourth decimal place in the currency quote.
The profit or loss will be:
1.3010 - 1.3000 = 10 pips
10 pip* $10 per pip = $100Therefore, 10 pips move for Standard lot is equivalent 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.
Example 3: for Example if EURUSD moves from 1.3000 to 1.3025 this is equivalent to 25 pips - 1 pip is the fourth decimal place in the currency quote.
The profit or loss will be:
1.3025 - 1.3000 = 25 pips
25 pip* $10 per pip = $250
Therefore, 25 pips move for Standard lot is equal to $250 dollars
If the trade moves in direction of the trade, the trader will make a profit of $250 dollars. If the trade moves against the direction of the trade, the trader will make a loss of $250 dollars.
How to calculate Standard Account Pip Size and Profit & Loss in a Standard Account.
