How Much is One Pip Worth in a Cent Account Trading Forex Cent Lots?
Cent Account Defined - a forex Cent account means traders can make trades using very small amounts of money, called Cent lots.
1 Cent lot is the equivalent of 100 Units of the base currency.
The Cent contract/lot is equivalent to a tenth of Micro lot.
For Cent lot the pip value per trade is equal to $0.01 or 1 Cent
Calculating Pip Value for Cent Account trading Cent Lots
A pip represents the smallest possible movement in a currency pair, which traders use when engaging in currency trading.
A movement of 1 pip while trading Cent lots/contracts equals $0.01 or 1 cent (calculated as 100 units of a currency x 0.0001 = $0.01 or 1 cent).
For instance, if the EUR/USD currency pair rises from 1.3000 to 1.3001, this movement corresponds to a change of 1 pip, which is defined as the fourth decimal place in the forex quote.
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