Is this a valid reason why 134 pips doesn't equal £134 on a live account

Broker Discussion Forex Brokers
1

Hi all so made me some pips today on my live account. Only thing was I didn’t get what i expected in returns.
I thought 134 pips would equate to say 134 x lot size. This was there reply…

Good morning,

It was good speaking with you before. I am sorry about this issue, I am hoping Metatrader are going to come up with an update to avoid issues like this as it can be quite concerning but as I say this method of trading is what the institutions and banks trade and it is the most transparent method, albeit slightly complicated.

For example:

Sold 158.500 - current price (157.157)= 1.343 ( 134.3 pips ( Yen is 2 pips decimal place and the 3rd is a tenth of a pip)).

134.3 pips * 10 (10 yen per 0.01) = 1343

1343/ 157.14

= £8.54

I hope this resolves the question.

Am I being naive or am I been fleeced?

2

It would have been a big help if you had given us some more information.

It’s impossible to analyze your problem without knowing the currency pair and the position size that you traded.

Just guessing at the missing information, it looks like you were trading one micro-lot of GBP/JPY.

If you use a Pip Value Calculator, and plug in:

• Currency Pair GBP/JPY

• Position Size 1000 (which means 1000 units of base currency, which equals 1 micro-lot)

• Ask Price 157.157

• Value in GBP

…then click Calculate, you will get

• Pip Value 0.0636 (which means that 1 pip = £0.0636)

Then, obviously, 134.3 pips = £8.54

By the way, when trading any JPY-pair in a GBP-denominated account, 1 pip will never equal £1, because the cross-currency (JPY) will never be the same as your account currency (GBP).

3

Hey Clint thank you for the response.

Sorry about the lack of info I thought It was enough for calculations.

You were correct on the pair and £ demonitated account.

This is my 1st week trading live and wasn’t aware of this calcuation.

But thank you for the help, I now know :wink:

4

Glad to help.