Lot 0.01 is 10cents or not?

Beginner Questions
1

I read and learnt that lots of 0.01 is 10cents. But I’m demo trading with a lot is 0.01 and my pip difference is 200pips. The results I’m getting is 2. I’m thinking it should be 20 per ma calculations. Any insight into that please

2

Hi

I think the lot is calculated using your account balance, the leverage your using and which ever currency pair your buying or selling

If you google it or even better go onto the pip school here your question will be answered

3

No, 0.10 is 10 cents. Hope this helps you. By the way, don’t take aggressive trading lots size in your trading.

4

If you are trading a pair such as EUR/XXX, and your account currency is XXX, then you are correct.

A position size of 0.01 lot will correspond to a pip-value of 0.10 XXX per micro-lot (0.01 lot)

[U]Examples[/U]:

  • If you are trading EUR/USD, and your account currency is USD, then 1 pip is worth $0.10 per micro-lot (0.01 lot).

  • If you are trading GBP/CAD, and your account currency is CAD, then 1 pip is worth C$0.10 per micro-lot (0.01 lot).

  • And so forth.

If your account currency does not match the quote currency in the pair you are trading, then the pip-value per micro-lot will be close to, but not exactly equal to 10 cents per pip.

[U]Example[/U]:

  • If you are trading EUR/USD, and your account currency is CAD, then (currently) 1 pip is worth about 13 cents per micro-lot (0.01 lot). You can confirm this using the Pip-Value Calculator – Pip Value Calculator - BabyPips.com

If “pip difference” means the profit on your trade, then I’m guessing that the correct figure is 20.0, not 200. That is, I think you probably earned 20 pips, not 200 pips. In which case, a profit of $2 would be correct.

5 Likes
5

Noted. Thanks a lot.

6

Exactly, i think the problem is from the number of pip i thought i earned in that trade.

Screenshot_2018-06-29-14-37-25[1].png720×1280 63.8 KB

See eg in the pic please. isnt that 400 pips difference?

7

Thank you very much.

8

No, it’s 40.0 pips.

In a 6-digit price quote, with 5 digits after the decimal point, the last digit is 1/10 of a pip.

So, 40 pips gained = $4.00 gained (at 10¢ per pip).

4¢ commission was deducted from your gross profit, leaving a net profit of $3.96

3 Likes
9

Thanks a lot. You have been of help.

10

You are always welcome mate! Hope for the best, keep hunting green pips.

11

Ayeee Mate. The hunt is on

1 Like
12

Nice to know; and always keep updating us.

1 Like
13

Will do Luke Ronchi.

14

0.01 is 1 cents … that means 1/100 … 200 pips is 200 devide by 100 is 2 $

15

It depend on your broker contract and leverage.

16

Hi mate having red your comments on the above post been attracted to you as far as trading is concerned. I think you can be of great assistent to me over here. I’m new to this been trying to run my demo account but things are not working out. Kindly help

17

Yes you are right! But for the new Forex traders, small trading lots size are useful, since they are armature in nature.

18

I can’t believe the naivete of some of those on this thread, putting stuff like this forward as an answer.

The definitive answer is given above by @Clint in post #4.

If your betting “lots” 1 pip is usually equal to 10 cents - per pip

1 Like
19

Lol, simplicity is the key