# Translating pips to money

162

Hi,

can someone explain to me how I translate pips into real "money" when trading with MetaTrader 5.

Example:

- I have bougt 1.00 unit (volume) of EUR/CHF for  1.23158

-.I have sould this 1.00 unit of EUR/CHF for 1.23132

- The resulting profit is EUR -21.12

How do I calculate this profit, i.e. why does 0,00026 of EUR/CHF correspond to EUR 21.12? Can I do this calculation by myself using the information provided in MetaTrader 5?

Thank you.

Best,

Chris

40731

zubr:

Hi,

can someone explain to me how I translate pips into real "money" when trading with MetaTrader 5.

Example:

- I have bougt 1.00 unit (volume) of EUR/CHF for  1.23158

-.I have sould this 1.00 unit of EUR/CHF for 1.23132

- The resulting profit is EUR -21.12

How do I calculate this profit, i.e. why does 0,00026 of EUR/CHF correspond to EUR 21.12? Can I do this calculation by myself using the information provided in MetaTrader 5?

...

1.23158 - 1.23132 = 0.00026 or 2.6 pips or 26 points. Some people (and recently Metaquotes called a pip what is for me a point on 5-digits broker). For 1 lot (100.000 unit), you have 26 CHF profit (loss)

So you have to convert it in your money deposit which is EUR, that gives 26/1.23132 = 21.12 EUR (rounded)

162

angevoyageur:

1.23158 - 1.23132 = 0.00026 or 2.6 pips or 26 points. Some people (and recently Metaquotes called a pip what is for me a point on 5-digits broker). For 1 lot (100.000 unit), you have 26 CHF profit (loss)

So you have to convert it in your money deposit which is EUR, that gives 26/1.23132 = 21.12 EUR (rounded)

Ok, this is clear.

Does this mean that a pip always corresponds to the 4. decimal place, i.e. also for incides, commodities ...?

This manual calculation seems to be quite cumbersome when placing many orders. It there a way in MT5 to define the stop loss level and MT5 automatically computes the corresponding volume based on my pre-defined money management (i.e. 2% of total deposit)?

Documentation on MQL5: Standard Constants, Enumerations and Structures / Trade Constants / Order Properties
• www.mql5.com
Standard Constants, Enumerations and Structures / Trade Constants / Order Properties - Documentation on MQL5
40731

zubr:

Ok, this is clear.

Does this mean that a pip always corresponds to the 4. decimal place, i.e. also for incides, commodities ...?

This manual calculation seems to be quite cumbersome when placing many orders. It there a way in MT5 to define the stop loss level and MT5 automatically computes the corresponding volume based on my pre-defined money management (i.e. 2% of total deposit)?

A pip is very relative. I am personally using only Forex. So for me a pip is 0.0001 for all pairs but the one with JPY where a pip is 0.01. But that may vary from person to person, so you have to check when someone are talking of a pip.

This is now included in MT5 when you are using the mouse to place your SL, you can see the sl in pips (which is points and not pip as I am talking above) and in deposit currency (see here, pt 2 and 3).

162

angevoyageur:

A pip is very relative. I am personally using only Forex. So for me a pip is 0.0001 for all pairs but the one with JPY where a pip is 0.01. But that may vary from person to person, so you have to check when someone are talking of a pip.

This is now included in MT5 when you are using the mouse to place your SL, you can see the sl in pips (which is points and not pip as I am talking above) and in deposit currency (see here, pt 2 and 3).

My MetaTrader does not seem to support this option. When I press F9 (new order) I get the same windows as shown in picture 1 of your link. However, as "Type" I can only choose between "Market Execution" and "Pending Order". The option "Exchange Execution" is however not available.

Or can I also use "Market Exchange" to place SLs in the chart? If you, could you give me a hint how this works in the chart?

40731

zubr:

My MetaTrader does not seem to support this option. When I press F9 (new order) I get the same windows as shown in picture 1 of your link. However, as "Type" I can only choose between "Market Execution" and "Pending Order". The option "Exchange Execution" is however not available.

Or can I also use "Market Exchange" to place SLs in the chart? If you, could you give me a hint how this works in the chart?

Yes, that has nothing to do with Market or Exchange execution. I am talking about moving SL with mouse (pt2 & 3 of the link).

• You have to have the build 821.
• Place an order with a stoploss (and or takeprofit as you wish)
• Once placed, you get a red line indicating SL (and/or TP), try to move this SL with your mouse.
162

angevoyageur:

Yes, that has nothing to do with Market or Exchange execution. I am talking about moving SL with mouse (pt2 & 3 of the link).

• You have to have the build 821.
angevoyageur:

Yes, that has nothing to do with Market or Exchange execution. I am talking about moving SL with mouse (pt2 & 3 of the link).

• You have to have the build 821.
• Place an order with a stoploss (and or takeprofit as you wish)
• Once placed, you get a red line indicating SL (and/or TP), try to move this SL with your mouse.

• Place an order with a stoploss (and or takeprofit as you wish)
• Once placed, you get a red line indicating SL (and/or TP), try to move this SL with your mouse.

But if I have to place an order first, so I have to define the volume. However, if I olny know my SL level and my maximal risk (money management 2%, let's say 100 EUR) so I still don't know the volume which I had to calculate using your example above.

What I meat was that I define the SL level, the maximal risk and MT5 computes for me the appropriate volume that I use in the next step to place the order.

40731

zubr:

But if I have to place an order first, so I have to define the volume. However, if I olny know my SL level and my maximal risk (money management 2%, let's say 100 EUR) so I still don't know the volume which I had to calculate using your example above.

What I meat was that I define the SL level, the maximal risk and MT5 computes for me the appropriate volume that I use in the next step to place the order.

Ok, sorry I missed the point of volume, for that you need a script or an EA. You can search in the Codebase or the Market.
162

angevoyageur:
Ok, sorry I missed the point of volume, for that you need a script or an EA. You can search in the Codebase or the Market.
No problem. There are scripts  like "SetBuyStopOrder" which should serve my purpose. However I haven't figure out yet how to "activate" them. Do you have an idea how to use a downloaded script from codebase?
40731

zubr:
No problem. There are scripts  like "SetBuyStopOrder" which should serve my purpose. However I haven't figure out yet how to "activate" them. Do you have an idea how to use a downloaded script from codebase?
Is the script appears on your navigator window (in Scripts obviously) ?
162

angevoyageur:
Is the script appears on your navigator window (in Scripts obviously) ?

Yes, I first searched it in MetaTrader in the "Code Base", then right-click "Download". This action copied the script into the navigator where I see it under "Scripts=>Downloads=>setbuystoporder". When I right-click the script then I can for example select "Attach to chart" which leads to a new windows where I configure the script (the Input window). But after confirming with OK the script seems not to be working when I for example place an order.

How do you use/activate scripts from the navigator window?