Calculation problem

Hi everyone!

I’m a newbie and i Have a question regarding position value calculation. Let me get right to it.


I bought EUR/USD (my base curency is EUR)
Amount 0.01
Price 1.06112

Since i have standard trading account size that means,
1 position=100,000lots
I thought since I bought 0.01 that is 1000 lots and pip calculator shows that 1 PIP = 0.0942€

but why is then value of 83 pips (my target profit) only 0,78€ instead of 7,8186€???

any help or explanation would be very helpful.

Thank you

Let me correct your terminology.

You bought [I][B]1,000 units[/B][/I] (which equals [I][B]0.01 lot[/B][/I]) of EUR/USD at EUR/USD = 1.06112

Your [I][B]account currency[/B][/I] is EUR.

You have correctly determined the pip-value as €0.0942

Therefore, a price move of 83 pips [I][B]would be[/B][/I] worth 83 x €0.0942 = €7.8186

  • but, you didn’t earn 83 pips – [I][B]you earned 8.3 pips[/B][/I]

  • you entered long at 1.06112 and exited your trade at 1.06195 – the difference being 8.3 pips.

The value you referred to – €0.78 – accurately corresponds to a price move of 8.3 pips.

You have confused pips with “pipettes” (tenths of pips).

Welcome to this forum, by the way!

Note: my U.S. notation (€7.8186) differs from your European notation (7,8186€),

but, I think you will be able to “translate”.

.

Hi yakuza and welcome (I hope you have nothing to do with Japanese mafia lol).
Just what is confusing you is the fact that MT4 (for some reason) multiplies the pip by 10 when displaying it on the chart. Otherwise you have the following:
Opening price – 1.06112
T/P – 1.06195
So that would be 8.3 pips profit. You gain/lose 10 USD for each pip change on EURUSD with a position of 1 standard lot (100 000 currency units) -> if you have a position of 0,10 lots you will gain/lose 1 USD per pip, respectively as in your case with 0,01 lots position you will gain/lose 0.10 USD per pip. E.g. 8.3 pips * 0,10 USD = 0,83 USD T/P target.
Please note that result you get here is always in the secondary currency of the pair. It gets converted automatically in the base currency of your account.
Here you can find a similar thread that might be useful to you.
Cheers :slight_smile: