How do you calculate profit or loss using pips?
To calculate your profit or loss in pips, use the following formula:
Number of Pips Moved x Per Pip Value = Trade Profit/Loss
Using the example above and adding the parameter of a pip change of +28, the profit/loss would be calculated as follows:
28 x 40.165 USD per pip = 1,124.62 USD (profit)
If the there was a negative pip movement, a loss would occur. Using the same Per Pip Value as above and a pip change of -18, the loss is similarly calculated:
-18 x 40.165 USD per pip = - 722.97 USD (loss)