How to Calculate Pips in Forex - How to Calculate Pips Profit

Examples of how to calculate forex trading pips using the 4 Decimal Points Currency Quote - Pips and the 5 Decimal Points Currency Quote - Pipettes.

Example: For 4 Decimal Points FX Trading Quotes Format

If EUR USD moves from 1.4500 to 1.4501 then this move is equal to:

1.4501-1.4500 = 0.0001 (1 pip)

Value of = 0.0001 USD

1 contract = $100,000

Value of 1 pip for 1 contract = 100,000* 0.0001= $10

1 pip = $10, for 4 Decimal Points Format

4 Points Decimal Currency Quotes Format in MT4 - Forex Trading Pips

Example: For 5 decimal Points Quote

If EUR USD moves from 1.45000 to 1.45001 then this move is equal to:

1.45001-1.45000 = 0.00001 (1/10 pipette)

Value of = 0.00001 USD

1 contract = $100,000

Value of 1/10 pipette for 1 contract = 100,000* 0.00001= $1

1/10 pipette = $1, for 5 Decimal Points Format

5 Decimal Point Forex Quotes Format on MetaTrader 4 - Forex Fraction of Pips on Software

Please Note from the above MT4 screenshot how the fifth decimal point is shown in a digit much smaller than the other digits, this is to signify that it is a fraction of a pip.