This trade incurred a loss of 1 pip on a 1 lot. The loss should therefore equal -10.00 (the spread) , however the loss appears as -7.56 in Account History. There are no commission, tax or swap charges on the trade, so how is it possible for the loss to equal this amount?
On Trade Open:Bid = 1.15877Ask = 1.15887Spread = 10 pointsOOP = 1.15887
On Trade Close:Bid = 1.15877Ask = 1.15887Spread = 10 points
OCP = 1.15877
My account is in GBP. So shouldn't the loss in MT4 appear in GBP also?
What is $10 in GBP ??
I realise that the loss is equal to 10USD, I just thought that if the account was set up in a particular currency, then the P/L in MT4 would appear in that currency. Obviously this isn't the case.
But that IS exactly what it is doing. It IS showing you your Profit/Loss in GBP, not USD!
1 Pip-Lot has a value of $10 for EUR/USD which gave you a loss of -7.56 GBP (at the exchange rate at that time).
Yes sorry you're right. What I meant was that if I enter a 1 lot order, with my account denominated in GBP, I thought that in this case, 1 pip would be equal to £10.00. But 1 pip is actually equal to $10.00. Which still seems slightly strange because as mentioned the account is not in USD. But at least I know now so thanks for your help.
No. Values of Pips in each currency pair has a set value based on that pair. eg. GBP/USD, EUR/USD, etc. all end in the USD quote currency, therefore they all have a pip value expressed in USD.
Eg. EUR/JPY, GBP/JPY all have a quote currency of JPY, so their pip values are always expressed in JPY.
No. Values of Pips in each currency pair has a set value based on that pair. eg. GBP/USD, EUR/USD, etc. all end in the USD quote currency, therefore they all have a pip value of $10 USD.
Okay so just to confirm, you're saying that:
if I'm trading the USD/CAD, then the pip value appears in CAD.if I'm trading the GBP/NZD, then the pip value appears in NZD.if I'm trading the AUD/JPY, then the pip value appears in JPY.
if I'm trading the USD/CAD, then the P/L appears in CAD.if I'm trading the GBP/NZD, then the P/L appears in NZD.if I'm trading the AUD/JPY, then the P/L appears in JPY.
No. Your P/L will always appear in your "Deposit/Balance Currency", not in the "Quote Currency".
The currency pairs themselves however, are always expressed in a "Base Currency" to "Quote Currency" ratio and their "pip-lot" values are always expressed in their "Quote Currency".
However, In MetaTrader you can have it display the Profit/Loss of an open trade in "points" instead if that is what you prefer, but first learn to understand the relationship between all of these.
Sorry I changed my comment from 'the P/L appears in' to 'the pip value appears in' just before your reply.
The P/L in Account History will always appear in the deposit/balance currency, but the pip value of that pair is always expressed in the quote currency.