How much money can you earn per pip?

Hello,

I just started a demo account at FXCM.com I am not sure if this is a good system but it’s a start…

I am really interested. How much do you earn per pip? What are the factors?

To my understanding
[ul]
if you trade $100 you earn $1 per pip
[/ul]
[ul]
if you trade $1000 you earn $10 per pip
[/ul]
[ul]
if you trade $10,000 you earn $100 per pip
[/ul]

Is this correct? If I were to start an account with $2500 how much would I be earning per pip?

Thank You

hobbit,

thank you for the quick response…

Would you be able to elaborate on that?

For example, I am trading EUR/USD… I buy $1000…

How much would I earn per pip?

Sorry hobit I am a real noob…

I still don’t quite understand your explanation.

OK, I have a demo account with FXCM. They gave me $50,000 in the account.

When I open a position with $1000 EUR/USD and then I close it. For every pip with FXCM I make $10USD (this is a demo account).

Would this be the case, if I opened a real account with $2500 in it?
I open an account with $2500. I open a position for $1000 EUR/USD. I close it.
Would I still earn $10USD for every pip?

Hope it makes sense…

That doesn’t make much sense, i mean i’m pretty sure you can have $5000 in your account and still throw $1000 on one trade, no? and if you do so you’re making $10 per pip, if you throw $100 you’re only making $1, its a 100:1 ratio, i would think…

OK it’s starting to make PERFECT sense now…

Hobbit, i would just want you to confirm this…

If my leverage in the account is 100:1

It means, that even though I only have $1000USD deposited in the account…

I can control up to a $100,000 lot? Is this correct?

If I am controlling a $100,000 lot the amount I would make per pip is $10.

Can you just confirm this please, I would really appreciate it…

FXCM has only 2 lot sizes at this time.

100k
mini (10k)

The 100k is 100:1
The mini is 200:1

With $50k in your demo account, you are in the 100k ($100,000 @ 100:1 = $1,000) account. So your lot costs $1,000 and controls $100,000, and makes $10 per pip.

With $5,000 in your demo account, you are in the mini account ($10k @ 200:1 = $50). So your lot controls $10,000 and costs $50, and makes $1 per pip.

You have the same choice when you open a live account. 100k or mini. If you only have $2500, FX professionals would seriously recommend that you go with the mini because one 100k lot is $1000 which is almost half of your investment. Horrible risk/reward. The mini would be $50 per lot, which with $2500 would be 2%. You want to keep risk under 10% overall and (1 lot, one lot only!) while figuring things out.

Expect to loose big starting out, but don’t go crazy trying to recapture it (by increasing the number of lots). I lost half my $$$ my first week trading, but quadrupled up on what was left by the end of my first month. Relax, breathe, and wait for [i]your[/i] signal to enter and exit a trade.

You can open up a live chat/call/e-mail with FXCM and they will answer any question you have. All of the ones I chatted with were able to help me. You don’t need a live account to talk with them! How cool is that? :cool: They are there 24 hours a day while the FX is active. Which means not right this moment, but Sunday/Monday when the FX goes live again.

iatmarketing,

With your $2500 starting, you should only trade ONE MINI LOT MAX, which is 10,000. One mini lot of EU/USD equivalents to $1 per pip. Please do not trade more than ONE MINI LOT. Forex is not a get rich fast scheme. Don’t think about $10/pip or $100/pip for now, it will prevent you from the fun part of forex. Hope this helps :slight_smile:

Thank you guys. It makes perfect sense now!

Here’s a list of the pip values of the other currencies per 100K besides EUR/USD, in case you wanted to know.

Forex pips value - Mataf.net

Now that your question is answered, the next thought in many people’s minds is “how many pips do I need to earn in a day?” A great target for being a pro is 10 pips per day. It compounds nicely and you aren’t making as risky trades. I know of a professional who claims to only make 10 pips per week, and lives on that just fine. He is a retired banker with a big account, and probably trades 100 full sized lots. That means he is earning $1000 per week, on 10 pips. I wouldn’t trade over 5 lots with a broker who uses a dealing desk, I would only use an ECN.

it all depends on your lot size, mini lot is 1$ per pip if your account is based in same currency and so on,

Really? Drag up a 5 year old thread to give an answer that has already been established?

What’s your game?