Trade Forex Trading

How Many Dollars Equals a Mini PIP? - Calculating Mini Account Pip Value

The movement of currency pairs in fx is measured in pips: when you trade one Mini lot, one pip of movement equals $1, as shown in the examples here:

How to Calculate Forex Pip value in a Mini Account

To figure profit or loss on a mini account, count the pips a pair moves. Multiply by $1 per pip. That's the value for mini lots in Forex.

One pip marks the tiniest move in a currency pair that traders track.

1 pip move when trading Mini lots is equivalent to $1 (10,000 units of currency * 0.0001 = $1 )

How to Calculate Forex Profit & Loss in a Mini Account

Take EUR USD moving from 1.2000 to 1.2001. That equals 1 pip. A pip marks the fourth decimal in the forex quote.

The profit or loss will be:

1.2001 - 1.2000 = 1 pip

1 pip* $1 per 1 pip = $1

Hence, 1 pip move for Mini lot is equal to $1

If the trade transaction moves in direction of the trade transaction, the trader will make a profit of $10. If the trade transaction heads against the direction of the trade transaction, the trader will accrue a loss of $10 dollars.

Example 2: Let's say EUR/USD moves from 1.2000 to 1.2050 - that's a 50-pip move. A pip is just the fourth decimal place in a forex quote.

The profit or loss will be:

1.2050 - 1.2000 = 50 pips

50 pip* $1 per 1 pip = $50

Hence, 50 pips move for Mini lot/contract is equivalent to $50

If the trade goes your way, you earn $50 profit. If it moves against you, you lose $50.

For example, if EUR/USD shifts from 1.2000 to 1.2100, that equals 100 pips. A pip is the fourth decimal in the forex quote.

The profit or loss will be:

1.2100 - 1.2000 = 100 pips

100 pip* $1 per 1 pip = $100

Therefore, 100 pips move for Mini lot is equivalent to $100

If the trade goes your way, you gain $100. If it goes against you, you lose $100.

Guidance on how to compute the Pip Value, Profit, and Loss associated with a Mini Trading Account.

Get More Tutorials:

Forex Broker