Huh? pips and lot sizes and money

Ok so I’m not that much of a newbie, but this is definitely a newb question. Am I not seeing things correctly?

Look at this trade log from MT4 (screenshot).

The lot size is 0.1, this means that 1 pip = $1, right?

Now look at the trade. It went down 20 points, that’s 2 pips, so I should loose $2 right? but I lost $20?

(this is a demo account)

Am I confused?

Thanks for the help.


1.00 is 1 standard lot (100,000)
.10 is 1 mini lot (10,000)
.01 is 1 micro lot (1,000)

Jake

Correct.

Line 1: You went SHORT (entered a SELL) at 1.3759

Line 2: You modified your order, adding SL at 1.3779, and TP at 1.3739

Line 3: Price hit your SL at 1.3779

You took a loss of [B]20 pips,[/B] which cost you $20 (in play-money).

Don’t get discouraged. We’ve all made mistakes like this, learning this business.

That’s what demo accounts are for.

Clint is correct. You did, in fact, lost 20 pips which is $20 based on a mini contract (10,000 units).

If you want to know exactly how that $20 came about, you can calculate it this way:

Loss = (entry price 1.3759 x 10,000 units) - (exit price 1.3779 x 10,000 units)
= 13759 - 13779
= [B]-$20[/B]

I hope this calculation was clear enough for you.