I’m looking at a historic record of how many pips a trading group has gained in a year but according to a response in a different chat I’m calculating the profit wrong. I’ve been using the formula in the heading to calculate profit.
For example: if I had a $1000 account trading at .10 per trade with 50:1 leverage with a yearly gain of 1968.7 pips I would have a profit of 9843.5 and a total of 10843.5 (.1 x 50 x 1968.7 = 9843.5 + 1000 = 10843.5)
PLEASE correct me if I’m wrong I think I am but I’m not sure how.
That is wrong. With $1000 account a single micro lot your used margin would be $20 on say EUR/USD. I cant see where you are getting .10 per trade. So I am going to assume you mean .10 Per pip movement as that is correct. If you made 1968.7 pips on the year at .10 a pip thats $196.87 in profit. However pip values will change depending on the pair you are trading and the amount of lots you are entering into. This is also not factoring in any spreads or roll over charges that are part of trading forex