How to calculate profit/loss with pips?

January 17, 2014

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)

Please read on to find out how to calculate the pip change or move and how to calculate the Per Pip Value.

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