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-   -   Point equivalent is calculated with the account size or traded size? (https://www.forexfactory.com/showthread.php?t=405867)

paisakiller Jan 19, 2013 7:01am | Post# 1

Point equivalent is calculated with the account size or traded size?
 
Need help from experts. Thank you for your answers. (point=pip)


Q: I have a mini account, so one lot (1.0) is 10000 units. If I trade 0.01 lot i.e. 100 units of EUR/USD pair, and the pair is quoted with five points after decimal i.e. x.xxxxx

Then by formula, one point equivalent of profit or loss will be = Total Units Traded/Decimals in Quote



My question is, will the "total units traded" be 10000 (account size) or 100 (traded size) in this case?

If it was 10000, then one point will be 0.1 USD

If it was 100, then one point will be 0.001 USD

Custos Jan 19, 2013 10:35am | Post# 2

Need help from experts. Thank you for your answers. (point=pip)


Q: I have a mini account, so one lot (1.0) is 10000 units. If I trade 0.01 lot i.e. 100 units of EUR/USD pair, and the pair is quoted with five points after decimal i.e. x.xxxxx

Then by formula, one point equivalent of profit or loss will be = Total Units Traded/Decimals in Quote



My question is, will the "total units traded" be 10000 (account size) or 100 (traded size) in this case?

If it was 10000, then one point will be 0.1 USD

If it was 100, then one point will...
Obviously it will be 100 and 0.001 USD. The name already says it "total units TRADED", not "total units in account".

paisakiller Jan 19, 2013 11:10pm | Post# 3

Obviously it will be 100 and 0.001 USD. The name already says it "total units TRADED", not "total units in account".
Thank you for the reply. Btw, I'm not sure about the formula, is it correct?

MaxDoom Jan 20, 2013 6:12am | Post# 4

Need help from experts. Thank you for your answers. (point=pip)


Q: I have a mini account, so one lot (1.0) is 10000 units. If I trade 0.01 lot i.e. 100 units of EUR/USD pair, and the pair is quoted with five points after decimal i.e. x.xxxxx

Then by formula, one point equivalent of profit or loss will be = Total Units Traded/Decimals in Quote



My question is, will the "total units traded" be 10000 (account size) or 100 (traded size) in this case?

If it was 10000, then one point will be 0.1 USD

If it was 100, then...

look at it this way......

a normal lot 1.0 = $100,000 = $10 per pip

1 pip = 0.0001 note 4 decimals

so if you trade mini ie: $10,000 per lot then 1 pip = $10 / 10 = $1 per pip

so 100 lots on mini = $1 * 100 lots = $100 per pip


if you wanted to calculate the 5th decimal value then.

Normal 1.0 = $10 per pip / 10 = $1 per 5th decimal
Mini 1.0 lot = $1 per pip / 10 = $0.10 per 5th decimal
Mini 100 lot therefore = $10 per 5th decimal

Forexnuts Jan 20, 2013 6:23am | Post# 5

100 and just to add, there are any number of online pip calculators which can give you the value (in case you are still having trouble)


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