How Many Dollars is a Micro PIP? - How to calculate Micro Account Pip Value
Currency pair movement in fx is calculated using pips, when trading one micro lot the pip movement is equal to $0.1 as shown on the examples below:
How to Calculate Forex Pip value in a Micro Account
To calculate the forex profit or loss for a Micro account a trader will count the number of pips that a currency pair has moved and multiply the number of pips with $0.1. $0.1 is the pip value when trading forex micro lots.
1 pip is the smallest currency pair movement used when trading currencies.1 pip movement when trading Micro lots is equivalent to $0.1 dollars (1,000 units of currency * 0.0001 = $0.1 )
How to Calculate Forex Profit and Loss in a Micro Account
For Example if EURUSD moves from 1.2000 to 1.2001 this is equal to 1 pip - 1 pip is the 4th decimal place in the fx quote.
The profit or loss will be:
1.2001 - 1.2000 = 1 pip
1 pip* $0.1 per pip = $0.1
Therefore, 1 pip move for micro lot is equal to $0.1
If the trade moves in direction of the trade, the trader will make a profit of $0.1. If the trade moves against the direction of the trade, the trader will make a loss of $0.1.
Example 2: for Example if EURUSD moves from 1.2000 to 1.2050 this is equal to 50 pips - 1 pip is the 4th decimal place in the fx quote.
The profit or loss will be:
1.2050 - 1.2000 = 50 pips
50 pip* $0.1 per pip = $5
Therefore, 50 pips move for micro lot is equal to $5
If the trade moves in direction of the trade, the trader will make a profit of $5. If the trade moves against the direction of the trade, the trader will make a loss of $5.
Example 3: for Example if EURUSD moves from 1.2000 to 1.2100 this is equivalent to 100 pips - 1 pip is the fourth decimal point in the forex quote.
The profit or loss will be:
1.2100 - 1.2000 = 100 pips
100 pip* $0.1 per pip = $10
Therefore, 100 pips move for micro lot is equivalent to $10
If the trade moves in direction of the trade, the trader will make a profit of $10. If the trade moves against the direction of the trade, the trader will make a loss of $10.
How to calculate Micro Account Pip Value & Profit & Loss in a Micro Account
