oussama94
05-28-2017, 00:12
Let’s look at a EUR/USD example. If the price moves from 1.2853 to 1.2873, it has gone
up by 20 pips. If it goes from 1.2853 down to 1.2792, it’s gone down by 61 pips. Pips
provide an easy way to calculate the profit or loss (also known as the P&L) on a trade.
To turn that pip movement into a profit or loss, all you need to know is the size of your
deal. For a 100,000 EUR/USD position, a 20-pip move equates to $200 (€100,000 ×
0.0020 = $200). For a 50,000 EUR/USD position, the 61-point move translates into $305
(€50,000 × 0.0061 = $305). Depending on which direction you decide to trade in
(either to buy or to sell) you could make or lose the calculated corresponding amount.
up by 20 pips. If it goes from 1.2853 down to 1.2792, it’s gone down by 61 pips. Pips
provide an easy way to calculate the profit or loss (also known as the P&L) on a trade.
To turn that pip movement into a profit or loss, all you need to know is the size of your
deal. For a 100,000 EUR/USD position, a 20-pip move equates to $200 (€100,000 ×
0.0020 = $200). For a 50,000 EUR/USD position, the 61-point move translates into $305
(€50,000 × 0.0061 = $305). Depending on which direction you decide to trade in
(either to buy or to sell) you could make or lose the calculated corresponding amount.