Correct position sizing lesson in the school section

Beginner Questions
1

USD 5,000 x 1% (or 0.01) = USD 50

Next we divide the amount risked by the stop to find the value per pip.

(USD 50)/(200 pips) = USD 0.25/pip

Lastly, we multiply the value per pip by a known unit/pip value ratio of EUR/USD. In this case, with 10k units (or one mini lot), [U][B][I]each pip move is worth USD 1[/I][/B][/U].

USD 0.25 per pip * ((10k units of EUR/USD)/(USD 1 per pip)) = 2,500 units of EUR/USD

can somebody explain to me how the underlined figure of each pip move is calculated. i understand everything so far but how is this related to one mini lot? it doesnt seem to have been explained how you get 1 dollar for each pip move unless ive missed something:confused:

many thanks and happy hunting:D

2

$10,000(leveraged amount) x .0001(pip movement) = $1.00

3

aha i see. many thanks master tang, your wisdom has moved me toward enlightenment indeed.

may a thousand pips rain down upon you for this most kind act. thank you sir.