Math question for anyone smarter than myself

This is embarrassing but I cannot figure this out. As someone who likes to keep records of all pips won and lost, I simply cannot remember how to do this math. If I buy 10,000 units of currency and sell 7000 for a 30 pip gain and later sell the remaining 3000 units for a 50 point gain, how do I calculate what the actual pip gain was for the entire 10,000 unit lot? In other words, the average of the pip gain if all 10,000 units had been sold at once? Thanks in advance. I know the answer is somewhere between 30-50 pips but I cannot figure out how to get there.

Like this … (30 x 0.7) + (50 x 0.3) = 36.

You made 30 pips on 70% of your position, and 50 pips on the remaining 30%, so your total net gain worked out in proportion to your 10,000-unit starting point is 36 pips. And as you rightly say, the answer must be something between 30 and 50, so you can see it “looks right”, too.

Not “smarter”, just “more used to working it out, through familiarity”. Nobody was born knowing how to do this stuff. :wink:

Lexys, thanks for your answer. Makes perfect sense. One final Q? If had not bought 10,000 units but instead had bought 8000, sold 5000 today and 3000 tomorrow, let me try:

Since 5000 is 62% of 8000, would I work it like this: (30pips x .62) + (50 pips x .38) = 37.6 pips. I think I have that right. I assumed you always have to figure the percentage of the lot breakdown first. In my first example, it was a nice, even 70% based on 10,000 units and the 2nd, 62%. Thank you!

Yes … you have it right. :cool:

Thanks a million. Let’s go smash some pips!

36 indeed, i counted

I have to ask, why do people count pips they have made when each pip value on the various currencies are different?

Some people believe in gathering data, some people like to know their weekly pip number (and some traders only trade one currency Pair). But I agree with your implication - personally I only look at the percentage return on my account, I don’t bother with pips or financial gain (expressed as a sum of money). But we’re all different, it’s what makes us interesting!

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