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SuperHero
SuperHero
Number of messages : 34
Points : 1644
Date of Entry : 2015-08-31
Year : 39

ma1 How do I calculate my pip profit and loss?

on Mon Aug 31, 2015 10:53 pm
Every pip movement up and down will result in a profit or loss depending on the direction of your trade. P&L per pip is calculated on the basis of the counter currency since you are always trading the base against it.



If you are buying the EUR against the USD, any profit and loss from this trade is due to the conversion rate of EUR to USD and the P&L for this trade is converted to USD terms in real time. The P&L of a pip is always dependent on the size of the trade or volume of the trade and size of the pip. 

Example:
Pip Profit/Loss = Trading volume x pip size
In the case of the EURUSD:
1 pip = 100,000 x 0.0001 = USD 10

This means that in a trade with a volume of EUR 100,000, each pip up or down in the price will result in a USD 10 profit or loss.
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