Calculate the profit in MT4

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Hello everyone, I'm new to the trading world and there's something that is giving me a hard time even tought it's maybe very simple. From what I know when you open an order in MT4 Demo account the sizes 0,01 or 0,1 or 1,0 equels to 1000 units 10 000 or 100 000 units. So now I opened a new order of 0.05 (5000 units) of EUR/CAD for the starting price of 1,30046 at LONG. My order is still open and the price is up to 1,32051 so im in the profit the only problem is that MT4 gives me 63,70$ and I wonder how did they come with that. Wouldnt it be (5000*1,32051) - (5000*1,30046) which gives me 100,25$ of profit. Thanks alot for helping me out

 
PixiZakon:
Hello everyone, I'm new to the trading world and there's something that is giving me a hard time even tought it's maybe very simple. From what I know when you open an order in MT4 Demo account the sizes 0,01 or 0,1 or 1,0 equels to 1000 units 10 000 or 100 000 units. So now I opened a new order of 0.05 (5000 units) of EUR/CAD for the starting price of 1,30046 at LONG. My order is still open and the price is up to 1,32051 so im in the profit the only problem is that MT4 gives me 63,70$ and I wonder how did they come with that. Wouldnt it be (5000*1,32051) - (5000*1,30046) which gives me 100,25$ of profit. Thanks alot for helping me out

Hello PixiZakon, if you are using .01 lot size then 200 pips = $20.00 so .05 lot size should be like you said around $100, almost looks like they are figuring for .03 lot size.

 

Thanks for the answer and I think I found out what's happening but still not sure. Looks like my demo mt4 account is on the great britain's server GBP. So I guess when im buying 5000 units of EUR/CAD it uses the equivalent of GBP to buy it. So the 63,70 it shows me in profits I think it's in British pounds since 1 CAD = 1.58 GBP So 63,70*1.58= 100,64 $ CAD which is the amount I first came up when trying to calculate my profit. I'm in Canada so I was assuming MT4 was showing me amounts in canadian dollars since nowhere is it shown it's on GBP or anything else. Hope that's it cause I really can't see what else could it be

 

The pip value for EURCAD at the current moment is USD10.08.

Since your lot size is 0.05, your pip value USD0.504.

The number of pips from 1.30046 to 1.32051 is 200pips (round off).

So your profit is USD100.80. If your account is in GBP, you take 100.80 divide by current GBPUSD rate and it should give you around 63.50 pounds.

PixiZakon:
Thanks for the answer and I think I found out what's happening but still not sure. Looks like my demo mt4 account is on the great britain's server GBP. So I guess when im buying 5000 units of EUR/CAD it uses the equivalent of GBP to buy it. So the 63,70 it shows me in profits I think it's in British pounds since 1 CAD = 1.58 GBP So 63,70*1.58= 100,64 $ CAD which is the amount I first came up when trying to calculate my profit. I'm in Canada so I was assuming MT4 was showing me amounts in canadian dollars since nowhere is it shown it's on GBP or anything else. Hope that's it cause I really can't see what else could it be
 

I use another method to calcuate the profit but glad we get the same result. I get what you did but just wondering how you got the 10.08$ for pip value?

 

The point values for each pair are dependent on the denomination of the account being traded. For example, I have a USD based account, so regardless of the currency pair, each pip must be converted to USD. When I trade eur/usd, this is automatically done, since usd is the cross (second) pair, the eur/usd rate moves in dollar terms (dollars per pip). But when I trade usd/chf, each pip is worth 1 chf (on a 10k trade) so it has to be converted to usd. This is done by dividing 1 chf by the rate, say 0.9300 which is 1.08 (rounded) – meaning each pip on a 10k usd/chf trade is worth about 1.08 usd.

PixiZakon, I would guess that rossell is assuming a 100k eur/cad trade, but the logic is still the same – must convert cad into usd (or whatever your account denomination is). For a 10k eur/cad trade, each pip (on a 10k trade) is worth 1 cad. So take 1 and divide by the usd/cad rate, say 0.9900 to get 1.01 (rounded) for a 10k trade. It’s a similar equation when converting other pairs. Take eur/aud, each pip is worth 1 aud (on a 10k trade) but this time you have to take 1 aud and multiply by the aud/usd rate (because aud is the base/first currency, not the cross/second currency), so if aud/usd is about 1.0550, each pip is worth about $1.05 on a 10K trade

I use this to help calculate risk management when trading. When trading something like usd/jpy, if I set a stop of 50 pips on a 20k trade, I know I’m actually setting it at a dollar loss of $113 (not $100) because each pip on a 20k usd/jpy trade is worth $2.26.

Hope it helps, best of luck trading!

 
PixiZakon:
I use another method to calcuate the profit but glad we get the same result. I get what you did but just wondering how you got the 10.08$ for pip value?

The point values for each pair are dependent on the denomination of the account being traded. For example, I have a USD based account, so regardless of the currency pair, each pip must be converted to USD. When I trade eur/usd, this is automatically done, since usd is the cross (second) pair, the eur/usd rate moves in dollar terms (dollars per pip). But when I trade usd/chf, each pip is worth 1 chf (on a 10k trade) so it has to be converted to usd. This is done by dividing 1 chf by the rate, say 0.9300 which is 1.08 (rounded) – meaning each pip on a 10k usd/chf trade is worth about 1.08 usd.

PixiZakon, I would guess that rossell is assuming a 100k eur/cad trade, but the logic is still the same – must convert cad into usd (or whatever your account denomination is). For a 10k eur/cad trade, each pip (on a 10k trade) is worth 1 cad. So take 1 and divide by the usd/cad rate, say 0.9900 to get 1.01 (rounded) for a 10k trade. It’s a similar equation when converting other pairs. Take eur/aud, each pip is worth 1 aud (on a 10k trade) but this time you have to take 1 aud and multiply by the aud/usd rate (because aud is the base/first currency, not the cross/second currency), so if aud/usd is about 1.0550, each pip is worth about $1.05 on a 10K trade

I use this to help calculate risk management when trading. When trading something like usd/jpy, if I set a stop of 50 pips on a 20k trade, I know I’m actually setting it at a dollar loss of $113 (not $100) because each pip on a 20k usd/jpy trade is worth $2.26.

Hope it helps, best of luck trading!

 

thanks alot for the in detail explanation I really need it so I can have good basics. But lets take for exemple the last part of your post. If you trade for 20k of usd/jpy wouldnt you get 2 jpy for each pip since for each 10k trade you get 1 pip value of the base currency just like in your exemples. So you just have to convert 2 jpy in USD to get the pip value. Since 1 usd = 89,97 jpy then 2 jpy = 0,022 $ (2/89,97)

 

In mql there is a function that returns the tick (point) value in base currency.

double pointValue = MarketInfo(Symbol(),MODE_TICKVALUE);

The result is not necessary the same for the same symbols on different brokers. Once when you get tick values for desired currencies (symbols), it is not difficult to convert one to another

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