How to calculate the number of pips (profit/loss)?

Beginner Questions
1

Hello everyone,

I am an old newbie! (I joined baby pips long time back but was trading mostly in precious metals. Now, I’m focused on forex). I am practicing my trading technique and it looks promising. Hopefully, this exuberance transforms from paper trading to live trading also…

Anyhow, I need some clarification in calculating the number of pips as I am a little confused, when it comes to the fractional bit.

Here is an example:

I bought (paper trade) one mini lot of AUD/USD at 0.89437 and sold it at 0.90579. Now I just want to know how many pips did I make? I’ve searched the net but, no luck!

Thanks

Raheel

2

[QUOTE=“raheel;610074”]Hello everyone, I am an old newbie! (I joined baby pips long time back but was trading mostly in precious metals. Now, I’m focused on forex). I am practicing my trading technique and it looks promising. Hopefully, this exuberance transforms from paper trading to live trading also… Anyhow, I need some clarification in calculating the number of pips as I am a little confused, when it comes to the fractional bit. Here is an example: I bought (paper trade) one mini lot of AUD/USD at 0.89437 and sold it at 0.90579. Now I just want to know how many pips did I make? I’ve searched the net but, no luck! Thanks Raheel[/QUOTE]

114.2-pips

Simple maths, just minus one from the other. 0.90579 - 0.89437 = 0.01142

However the last digit isn’t a whole pip, it’s a pippette so a tenth of an actual pip. Most currencies are to 4 decimal places.

3

For 4-decimal pairs I use (X.XXXX - Y.YYYY)*10,000

For yen pairs I use (XX.XX - YY.YY)*100

In your case that would be (0.90579 - 0.89437)*10,000 = 114.2 pips

Here’s a link that might help: Pips and Pipettes | How Do You Trade Forex? | Preschool