Hello! My name is João, I from Brazil. I apologize already for English errors.
I am new to forex and already know quite a lot about the market.
But I am very doubts about PIP.
I have a demo account at a brokerage with a million dollars and wanted to share with you my doubts.
I thank you a lot for your help.
An example is an operation in the GBP / USD:
Type: sale
Lot: 1.00
Top price: 1.46325
Price order: 1.46318
PIPS: 1.46325 - 1.46318 = 7
PROFIT IN DOLLARS: 7 USD
When I open my real account at a brokerage that have a micro lot with $ 50 deposited:
An example is the operation EUR / USD
Type: sale
Lot: 1.00
Top price: 1.09706
End Price: 1.09726
PIPS: 1.09706 - 1.09726 = 20
PROFIT / INJURY IN DOLLARS: $ -0.20
Ie do the same calculation in two accounts and are different.
In the demo account each pip costs $ 1. In real account each pip costs 0.1 cent dollar.
I do not understand. I’m calculating wrong? or WHAT may be I’m doing?
Thanks a lot for the help! I am looking for that answer everywhere and can not find.