Question on Metatrader pip count.

N

nasa

New Member
Ok Guys. I have been studying forex trading now for about a year or more off and on. I have been through most indicators and done many tutorials on trading.
I am very interested to go further with this. However now that I have began paper trading I have uncounted something that I just can't work out.
Every tutorial has taught me that a trade of 1 LOT on the forex is 100000 units and a mini lot is 10000 units.
So placing a trade of 1 LOT it should move about $1000 to the margin.
And placing a trade of 1 mini LOT it should move about $100 to the margin.
So when trading 1 LOT the profit should be around $10 a pip and when trading a mini lot the profit should be around $1 a pip.
I am using Metatrader 4 and while trading you can use the crosshairs to measure pips across the screen. During trade I can see the profit in the profit column.
When I place a 1 LOT trade I am sure it is a full lot because it moves over $1000 from the balance to the margin.
However during the trade if the trade goes up by 20 pips instead of showing $200 profit it shows just $20 profit. That is what I would expect on a $100 or mini lot trade.
Why dose Metatrader dislike me so. What am I doing wrong?
 
Haha - you're doing it wrong.

Get out of the paper, well maybe not even paper - digital world and come join us in the physical reality.
 
Check the leverage on your account... I've not used metatrader before so I can't help you were to find that - but it sounds like you're at a tighter leverage on your account.

its probably a better thing tho - so you can open 10 lots rather than 1 for the exposure you're getting, and then you close out 1/2 and leave the others free rolling or something like that.
 
RicHARD said:
Haha - you're doing it wrong.

Get out of the paper, well maybe not even paper - digital world and come join us in the physical reality.
Click to expand...

Sorry but you are the one doing it wrong.

Putting all your money in 1 asset is doing it wrong.

Dismissing everything else that is not that asset is doing it wrong.

I have a feeling that we will have a GFC 2 soonish perhaps and everything will tank as well as Silver just like 2008 and the people in "paper" will come out on top for the time being.

Even if that doesnt happen, you still should be a little more open Richard.
 
Nowadays most brokers use 1/10 pips (pippettes).

If you're seeing EUR/USD go from 1.45000 to 1.45020 that is 2.0 pips and not 20 pips.
 
Ernster said:
RicHARD said:
Haha - you're doing it wrong.

Get out of the paper, well maybe not even paper - digital world and come join us in the physical reality.
Click to expand...

Sorry but you are the one doing it wrong.

Putting all your money in 1 asset is doing it wrong.

Dismissing everything else that is not that asset is doing it wrong.

I have a feeling that we will have a GFC 2 soonish perhaps and everything will tank as well as Silver just like 2008 and the people in "paper" will come out on top for the time being.

Even if that doesnt happen, you still should be a little more open Richard.
Click to expand...

I'm sure he only meant tongue and cheek...and most of us do diversify from 1g to 15Kg bars? :lol:

Personally the thought of Forex trading just puts the shivers up my spine - good for those who can pull it off and have the stomach for the risk...given everything going on around the world currently physical is where I'm happy to ride out the wave - sure will drop,but as in 2008 rallied pretty quickly compared to any other class...

Each to our own...best of luck :)
 
nasa said:
Ok Guys. I have been studying forex trading now for about a year or more off and on. I have been through most indicators and done many tutorials on trading.
I am very interested to go further with this. However now that I have began paper trading I have uncounted something that I just can't work out.
Every tutorial has taught me that a trade of 1 LOT on the forex is 100000 units and a mini lot is 10000 units.
So placing a trade of 1 LOT it should move about $1000 to the margin.
And placing a trade of 1 mini LOT it should move about $100 to the margin.
So when trading 1 LOT the profit should be around $10 a pip and when trading a mini lot the profit should be around $1 a pip.
I am using Metatrader 4 and while trading you can use the crosshairs to measure pips across the screen. During trade I can see the profit in the profit column.
When I place a 1 LOT trade I am sure it is a full lot because it moves over $1000 from the balance to the margin.
However during the trade if the trade goes up by 20 pips instead of showing $200 profit it shows just $20 profit. That is what I would expect on a $100 or mini lot trade.
Why dose Metatrader dislike me so. What am I doing wrong?
Click to expand...

Some brokers accounts may denote lots differently. For example a lot of brokers on new accounts denote a lot as 10,000 allowing you to trade nano lots, i.e. 0.01 lots on these accounts is exposure to $100. Combined with what jim86 has said regarding 5 digit brokers. A pip is still 0.0001 on most crosses (except the yen which is 0.01). Leverage should not have too much to do with it as it is just the requirement for margin in your account and if you are trading sensibly then it should not matter if you have 1:50 leverage or 1:1000. The only difference will be that you will be able to open more trades with the higher leverage account. Hope that helps.
 
RicHARD I am only about 100 ounces off 1000 ounces physical at this time and am still buying. I don't think it is wrong to try to make money on the forex as well.
Just think of all the physical silver I could buy with a decent winning trade on the forex.
To the rest of you people I have been using Metatrader account with an account set at a leverage of 100/1 sometimes the price is shown in five digits so if Metatrader is actually showing me the count as pipettes instead of pips that would equate the difference. That would mean when I run the mouse up to see how many pips profit I have made it is actually showing me the profit in pipettes. That would mean the profit would be 1/100 of
What it would be in pips and that would be correct. I will have to look further into it.
Thank for steering me in that direction.
Damm now I will have to trade 10 times harder.
Just knew it looked to good to be true. LOL.
 
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