How Can I Calculate Pips in Forex - How to Calculate Pips Profit

Examples of figuring out pips using the 4 Decimal Points Currency Quote - Pips and the 5 Decimal Points Currency Quote - Pipettes.

Example: for 4 Decimal Point FX Quotes Format

If EURUSD moves from 1.4500 to 1.4501 then this price movement is equal to:

1. 4501 minus 1. 4500 equals 0. 0001 (1 pip)

The Value of = 0.0001 USD

One contract equals one hundred thousand dollars

Value of one pip for 1 contract = 100,000* 0.0001= $10

1 pip = $10, for Four Decimal Points Format

4 Points Decimal Currency Quotes Format in MT4 - Forex Pips

Example: for Five Decimal Points Quote in FX Trading

If EUR/USD goes from 1.45000 to 1.45001, that equals one pip.

1.45001-1.45000 = 0.00001 (1/10 pipette)

Value of = 0.00001 USD

One contract equals one hundred thousand dollars

Value of 1/10 pipette for 1 lot = 100,000* 0.00001= $1

1/10 pipette = $1, for Five Decimal Points Format

Displaying Quotes with 5 Decimal Places on MT4 Software - Understanding Forex Fractional Pips on the Platform

On the MetaTrader 4 screenshot above, note how the fifth decimal is displayed smaller than the other digits to highlight it as a fraction of a pip.

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