Forex Trading Club

Here’s something interesting. I think it is: FRWC Royal Trader from Forex Robot World Cup.

If a trader tells you that they made 100 pips profit, you don’t learn anything about their finance situation. If they are trading a pair like EUR/USD where the buck is the quote currency, one hundred pips profit would be $1,000 on a standard lot of $100,000 but only $10 on a $1,000 micro lot. To grasp the dimensions of one pip in bucks in this situation, multiply 0.0001 by the lot size.

To calculate profit or loss from pips where the dollar is the quote currency, you just need to grasp that one pip is $0.0001 x lot size. If you have another currency as the quote currency, the pip is naturally in that currency, and you can multiply by the exchange rate to know the pip value in dollars.

All this may appear confusing at first glance but anybody who starts trading will pretty soon understand what a pip means in practice. Currency trading pips are a handy tool for measuring and recording movements in prices in forex trading.