# Calculating the profit/loss that correspond to one pip value (problem with pairs with Yen as a quote like USDJPY)

Hello,

I already opened a similar post on the subject but we got lost in a long conversion, so I preferred to open a new post so that the problem and the solution (if exists) remain clear.

Here is the problem:

I want to know the profit/loss corresponding of the movement of one pip (0.0001 for Forex pairs except for pairs with JPY, where it is 0.01) when I invest 20 euros with a leverage of 100.

Here is the solution for AUD / USD (it should be correct - given here: https://www.mql5.com/en/forum/429231):

```invest_for_the_trade_in_euros = 20 (euros)

invest_for_the_trade_in_base_currency = 29.25 (AUD)

margin_for_a_lot = nb_of_units_for_a_lot / leverage = 100 000 / 100 = 1000

fraction_of_the_invest_compared_to_margin = 29.25 / 1000 = 0.02925 = 0.02 (we round DOWN because we can only buy with a max granularity of a microlot)

profit_loss_value_of_1_pip_movement_in_quote_currency (USD)

= price_of_the_pair * 1pip * nb_of_units_boughts_with_the_leverage

= close * 0.0001 * (100000 * 0.02)

= 0.69 * 0.0001 * (100000 * 0.02)

= 0.139 (USD)

= 0.136 (EUR)
```

Here is the solution for USD / JPY (I don't think it's correct):

```invest_for_the_trade_in_euros = 20 (euros)

invest_for_the_trade_in_base_currency = 20.41 (USD)

margin_for_a_lot = nb_of_units_for_a_lot / leverage = 100 000 / 100 = 1000

fraction_of_the_invest_compared_to_margin = 20.41 / 1000 = 0.02041 = 0.02 (we round DOWN because we can only buy with a max granularity of a microlot)

profit_loss_value_of_1_pip_movement_in_quote_currency (JPY)

= price_of_the_pair * 1pip * nb_of_units_boughts_with_the_leverage

= close * 0.01 * (100000 * 0.02)

= 133.2 * 0.01 * (100000 * 0.02)

= 2664 (JPY)

= 19.58 (EUR)```

As you can see, from this calculation, it appears that 1 pip movement on the USDJPY pair equates to a profit_or_loss of 19.58 euros, which is a lot!

I am almost certain there is something wrong in my calculation, but I cannot find out what.

Any idea ?

Thanks a lot

Aymeric

p.s: I am doing this effort of calculations because I think it's important but I am wondering if there is not a tool (online) that exists and do exactly this, so please tell me if you know one

Reason: