The Different Between Pips And Point Forex

Hi Amir Murray,
Pip and point in forex are the same thing. It is just a term. For instance, SL 5 pips mean the same as SL 5 points. 

If the capital is $ 100, the leverage is 1: 500, how many pips is the resistance, and what is the percent margin level. Assume that I buy the pair:

1. EUR / USD (0.1 lot)

2. USD / NZD (0.1 LOT)

Thank you for your help

For Robert

Forex trading includes as margin trading. You can BUY or SELL using broker money. And part of your deposit becomes margin/guarantee. That is why choosing good leverage on a broker is important.

The formula is

Margin = BUy or SELL price * trading lot * 1 Contract Lot Size * Leverage used.

You can ask the broker, what is the contract size of the account type you are using. Sometimes, the contract size can differ between account types and at each broker. Thanks

Hi guys, 
Sorry I still don't get it. I saw this question earlier and I also want to ask how come 1lot = 100,000 with a capital of 100USD, Open Position with 0.01 Lot, the endurance is only about 1000 pips.


I think it should be 10000 pips, 100USD / 0.01 = 10000 pips. Is that right? Thank you

Hi James,

1) If 1 lot = 100,000
then:
1 lot = 100,000 ($10)
0.1 = 10,000 ($1)
0.01 = 1,000 ($0.10)

if the capital is $100, trade 0.01 lot, the resistance is 1,000 pips because 1 pips in a lot is 0.01 = $0.10.

2) If 1 lot = 10,000
then:
1 lot = 10,000 ($ 1)
0.1 = 10,000 ($ 0.1)
0.01 = 1,000 ($ 0.01)

If the capital is $100, trade 0.01 lot, then resistance is 10,000 pips because 1 pips in a lot is 0.01 = $0.01

Thanks

Oh, there is a formula for that. Thank you for your explanation.