Hello everyone,
I am practising and practising on a demo account MT4 and am seeing some profit! but i am confused…
The profit levels are at levels such as 5.05 etc, I think it is something to do with the volume as it is set at 0.01 but I don’t have a clue about the impact of this??!?!
Please help?!?
The result of a 5 digit broker, and a micro lot. If you were trading the euro, your pip profit was 50.5 pips.
5 digit brokers break down pips, into pippettes. Or one tenth of a pip. So using a micro lot .10 cent pip could also be any variation of pennies on the end. .11, .12, .13, and so on.
Thank you
So is it right that if I change the volume to one this becomes a mini lot and 1 pip is one Gbp (my account currency is Gbp)
And therefore 50gbp profit…
???
I’m going to answer your question with a question, because you answering it will be better than me just telling you.
If a micro lot is .10 a pip, and a mini lot is 10 times a micro, what would your 50 pip gbp profit be?
There’s a great section in the school on this. They cover the cross pairs as well. Best to spend some time there, they explain it better than I can.
Thank you for helping me learn
So if 5.05 profit per 0.01 volume (which is a micro lot?) so is 1 volume (one whole pip), 500 per pip?!
Where am I going wrong?!?!
Failing to acknowledge the importance of the decimal.
If you move a decimal on one side, you have to move it on the other.
Pips and Pipettes | How Do You Trade Forex? | Learn Forex Trading
Thank you
So 0.01 volume gave me 5.05 profit
If I move 0.01 one decimal that becomes 0.1 and then 0.1 is moved again to 1 that’s two moves so shouldn’t that be 5.05 moves to 55.00 and then 555?!!
I did read the school link and I can’t see it.
Sorry to trouble you
No.
if 0.01 volume gave you 5.05 profit, then
0.1 volume gives you 50.5
1 volume gives you 505
The ‘impact’ as you called it is going to be significant since you have only just begun trading.
You should stick with 0.01 volume. Increase it incrementally as your trading gets better.
Yes I agree and thank you
So if 0.01 is micro what lot does 1 represent please?
And is 505 per 1 a good profit???
this is a relative matter but the short answer is, of course it is good profit.