How much is 1 pip in a micro account

Beginner Questions
1

I just wanted to no how much was one pip in a micro account.

2

i think its $0.10

3

First, it’s not the size of your account, but the size of the trade that determines the pip value.

Second, the answer is “It depends”. For USD based pairs it’s $0.10 as kaegin said. For non-USD based pairs it varies.

4

First, it’s not the size of your account, but the size of the trade that determines the pip value.

To rhodytrader :

This appears a little confusing.

Could you expand/elaborate on what you are saying here to improve clarity.

Thanks.

5

It’s quite simple. The fact that I have a $10,000 account, or an account which is defined as a micro or mini or any other type, for example, means absolutely nothing in terms of the pip value of any given trade. Nor does my permissible leverage. There are only two things which define pip values. The first is the pair being traded. The second is how big a trade I make.

If I have a $10,000 account I could trade a position anywhere from $1 to $1,000,000 or more (assuming 100:1 permissible max leverage). If I am trading USD/JPY at current prices, for example, a pip value on a $1000 trade (1 micro contract) is about $0.09. If I were to trade $5000, it would be about $0.46. And so on.

6

Here you go Tymen I found the math.

Pips, lots and a little bit of math : Trainee Trader

7

Thanks, Rhodytrader for clarifying your answer.

Thanks to Daydreamer65 for your hyperlink - gone to my favourites. You certainly do have a way of making things especially simple - I like it.

Not that I did not know what a 1 micro pip was - but I wanted to see what you people had to say.

It is clear then, that a 1 micro pip value depends not only on the micro lot but also on how many of these lots you are trading.

8

strange…but yes, yes that’s correct

9

Micro account has 1000 of any currency I am using.
And as a beginner I am having just 200 pounds in my account.
and I want to risk only 2% of my account
Which one of the money is my account…1000 pounds or the 200 pounds?

10

This is dependent upon the pair, the lot size and the brokerage commission. I use MB Trading, and they have a “pay for limits” program which enables me to trade without commission, and also to receive credits. But let’s work through an example using EUR/USD.

A “Mini Lot” of EUR/USD has a gross profit of $1.00 per PIP. So a 1 PIP Profit, let’s say I Buy at 1.2500 and I Sell at 1.2501 then I make gross profit of $1.00. But if I Buy on MB Trading with a resting Limit order, then I receive a credit of 1.95 per $100k BASE currency PER SIDE. In EUR/USD, base currency is the EUR. So, let’s do the math: 1.95 times the current value of the Euro 1.25 (let’s say) is $2.43 per Forex Standard Lot. Credit for the Mini lot 1/10th that is $.24 PER SIDE. So if I Buy and I Sell with resting limit orders, I’ll get $.24 + $.24 = $.48 CREDIT. This means my NET profit is $1.48 because I was paid for adding liquidity to MB Trading’s ECN. MB Trading offers true Interbank pricing variable spreads which can be as low as 1/10th PIP. Now, let’s consider if I use Marketable orders for the transaction. The result is not so good. MB will then charge me a COMMISSION since I “take” liquidity from their ECN, rather than “adding” to their liquidity. In that case, my $1.00 Gross profit will be eroded by 2.95 per side per $100k base currency. Doing the math: 2.95 times 1.25 = $.369 Commission PER SIDE = $.737. Now, unfortunately, my $1.00 MINUS COMMISSION becomes only about $.26 NET PROFIT. Moral of the story: Use Limit orders to offset commission, and you can trade either commission free or you can offset commissions by enough Credits so that your Net Commission is neutral. Hope this helps ! HyperScalper (Hope the math is correct, you get the idea anyway!) Only a very limited number of ECN’s offer traders these benefits, so choose your brokerage CAREFULLY :slight_smile: