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September 28, 2016

# Question:How to calculate profit/loss and points/pips on MT4 (MetaTrader4) trading platform?

Answer:

When you trade Forex(and also all the other financial instruments), your profits and loss depend on the direction you have bet on and the direction the market price went.

For example, if you buy the minimum investment amount of USDJPY at the price of 100.00 and the price goes up to 101.00 and sell USDJPY, the price difference is 1 yen which is your profit.

But of course you don’t trade only 1 dollar, and the minimum trading volume of FXOpen is 1,000 units(which equals to 1,000 USD).

So in this case, you may multiply the profits with 1,000 times. You are making 1,000 yen of profit.

The above example is for making profits though, in case the market price went contrary, as in goes down to 99.00, you are losing 1,000 yen.

### Things to know about the Calculation

Calculation isn’t complicated once you understand it though, you may be bothered by calculating it every time you trade.

But don’t worry, all MetaTrader4 including FXOpen’s, has real-time profit and loss amounts displayed on the platform.

You can also open a Demo account to see how profit and loss go by trading with virtual money.

But to make your Forex investment easier, you may want to know the followings:

#### Order/Trading Volume

• 1 unit equals to 1 USD or 100 JPY
• 1 lot equals to 100,000 units in case of FXOpen. (this is the same for many Forex brokers)

#### Point/Pip (Price Difference)

• 1 point means the smallest digit displayed on FXOpen’s MT4. e.g. the price difference between 1.4781 and 1.4780 is one point.
• 1 pip means the second smallest digit displayed on FXOpen’s MT4. e.g. the price difference between 1.4781 and 1.4791 is one pip.

When you trade 1 lot(100,000 units) and the market price moves 1 pip, you may have made 10 units of profit or loss.

You may calculate your Forex trading on your way.

For inquiries regarding to the calculation, you may contact FXOpen support team from the Official Website.

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