Pip Worth Nano Account GBP V USD

Hi All

Newbie here trying to confirm what 1 pip worth using pip calculators

Say

1 British Pound equals
1.27 US Dollar

Nano Account

Account Currency
Account Balance
500
Risk Percentage
1
Stop Loss in Pips
5
Currency Pair
Price for GBP / USD
1.27
CalculateClear
Amount at Risk
5 GBP
Position Size
12700 units
Standard Lots
0
Mini Lots
1
Micro Lots
12

So i have with nano account bought 12 micro lots?

and

Currency Pair GBP v USD
Position Size
12700
Ask Price
1.2728
Value in £
Pip Value
0.9978 so pip value is just under £1.00?

so if i trade the channel in the afternoon on quiet day in USA time and look for 2 tops and 2 bottoms and then try to capture the bounce at bottom and top of channel at 50% of the move so say 16 pips an i try capture 8 pips then if i correct i get 8pips x 0.9978 so say i win £8?

i do this 3 x in the 5 min charts and win 3 x say £8 so £24 , i use stop loss, i know in channel that the last trade i do will be a losing trade so lose £8 so £24 - £8 i make £16 for that 1-3 hour say trading afternoon?

less the spread? dont know how to calculate that at moment .

if i trade the 1 hour channel and go for 80 pip win then i win £80?

the tools section on baby pips is great , just found them

also

Risk Reward Calculator

Reward
40
Risk
5
Ratio
8:1

i put in £ value or should it be pips value?

thanks

Hi Nick,

There’s so much in your post that I’m not confident I fully understand that I’m not [I]sure[/I] if anything I say can help you, but I have two quick thoughts to offer, just in case they might …

That must be about right, because if you’re trading with a 5-pip stop-loss as you’ve said, and your position-size/risk is £5 (being 1% of your £500 account), then that represents about £1 per pip, so reaching an 8-pip target with the trade [I]must[/I] bring you in about £8 of profit (less a tiny bit for the spread, perhaps, if you’re not including that in the calculation). That all sounds basically right, to me, anyway.

(5 pips is quite a small stop-loss for Cable, during its RTH? But maybe appropriate, if you’re trading from fast charts and have only an 8-pip target.)

It doesn’t matter, because it’s measuring a [B]ratio[/B] of reward to risk. An 8-pip target and a 5-pip stop-loss is going to give you the same reward-to-risk ratio of 8:5 (or 1.6:1) whether you measure it in £’s value or pip-value, isn’t it?

(Different software may be set up with different input-parameters, though, so I suppose the answer is really “It depends how the software’s designed”, but that ought to be specified anyway? You may be able to work this out either in your head or with a calculator, anyway?).

Apologies if I haven’t really helped. :8: