In this article you can learn how to calculate pips in MetaTrader 4.

One of the most basic concepts that every trader needs to know is the definition of pip and how to count them. To save you time with the calculations, trading platforms like MT4 have tools that allow you to do it automatically.

What is a Pip in MetaTrader 4?

  • The pips are the minimum price fluctuation that an asset can suffer in the financial markets.
  • Typically, this measure is used in forex and CFD trading.
  • The pip is different depending on the instrument you are trading.
  • In currency pairs, it is usually to the fourth decimal place, except for those against the Japanese yen. In these they are second.

In CFDs on indices and commodities, it is also usually the second digit after the comma. In any case, it is recommended that you consult the specifications of each asset to make sure of the digit that corresponds to the pip.

MetaTrader 4 can show you your profit and loss in pips, as well as calculate the potential profit and loss of a trade in this unit.

How to Calculate Pips in MetaTrader 4?

The easiest way to calculate the pips of a price movement on the MetaTrader 4 (MT4) platform is by using the crosshair tool:

  1. Activate the tool by clicking on the scroll wheel of your mouse or by clicking on the corresponding button on the toolbar
  2. Click on the candle from where you want to start calculating the pips and drag to the last candle
  3. Next to the cursor will appear 3 numbers separated by slashes (/). The second of them is the oscillation of the price expressed in points
  4. Divide the price in points by 10 and you will have the number of pips

Additionally, you can do the calculation manually, although it will take a little more time:

  1. Draw a horizontal line with the corresponding tool at the place you want to start measuring from
  2. Double click on it and a dialog box will open. In the “Parameters” tab you will find a box that says “Value”. There you have the entry price in the operation, copy it
  3. Repeat steps 1 and 2 drawing a new line at the closing price of the trade
  4. Subtract the closing price from the entry price and divide by the value per pip corresponding to the asset you are trading. This is the number of pips of the trade.

How to Count Pips in MetaTrader 4?

If you follow the instructions above, you will be able to count the number of pips of any price movement in Metatrader with very little effort. But to be more accurate in your profit and loss calculations, you should also take into account the number of lots or contracts you are trading.

Once you know the number of pips for a trade, you have to multiply this value by the number of contracts you are using. For example, a movement of 10 pips with 3 lots, would give you a profit of:

10 pips x 3 lots = 30 pips

If you are using fractional lots, remember that a mini lot equals 0.1 lots and a micro lot equals 0.01. The same 10 pip trade with 5 mini lots or 7 micro lots would give you the following results:

  • 10 pips x 0.5 = 5 pips
  • 10 pips x 0.07 = 0.7 pips

Frequently Asked Questions about how to count Pips in Metatrader 4
How are pips measured in Metatrader 4?

1. The value of the lot (volume of the operation) is multiplied by the value of the pip.
2. This means that 1 pip has the value of 10 USD (the quoted currency).
3. To determine the value of the pip in the base currency (EUR) the operation is carried out 0.0001 / 1.08962 * 100,000 = 9.18.

How are pips measured in trading?

We use pips to measure the change in the price of one currency relative to another.

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