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.
See my video:
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.
Example:
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.
He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
Related posts:
- How to Calculate Pips in NASDAQ? – Count Pips on NAS100
- Gold Pip Calculator – MT4 XAUUSD Pip Calculator
- Does HF Markets Have NAS100?
- Forex ROI Calculator
- Lot Size Calculator
- Forex Pip Calculator
- Payoff Ratio Calculator
- Risk Reward Calculator
- Forex Profit Calculator
- Forex Spread Cost Calculator
- What is the Difference Between Nasdaq and Nyse?
- Difference Between Dow Jones S&P 500 and Nasdaq
