To calculate the number of pips on NAS100 or NASDAQ, it’s crucial to understand that a 0.1 difference in price typically represents one pip on the Metatrader platform for many CFD brokers. For instance, if the NAS100 price advances from 11750.00 to 11750.10, that signifies a one pip difference for NAS100. If you add 25 pips to a 11750.00 NAS100 price, the result would be 11752.50.
In the MT4 platform, the value of a pip varies depending on the lot size you choose to trade for the NAS100. When trading a standard lot size, which is typically 100,000 units of the base currency, a single pip movement in the NAS100 corresponds to a $0.1 change in value.
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If you choose to trade a mini lot size, which is 10,000 units, the value of a pip is reduced tenfold to $0.01. Meanwhile, trading a micro lot size, equivalent to 1,000 units, means that the value of a pip is even smaller, at $0.001. It’s crucial for traders to understand these pip values as they directly impact potential profit or loss, depending on the size of the trade and the magnitude of price movement.
One micro lot: 11500.55 – 11495.55 = 50 pips. So if the price rises 50 pips and your lot size is one micro lot, it is $0.05.
One mini lot: 11500.55 – 11493.35 = 70 pips. So if the price rises 70 pips and your lot size is one mini lot, it is $0.7.
One lot: 11500.55 – 11493.24 = 71 pips. So if the price rises 71 pips and your lot size is one lot, it is $7.1.