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How to calculate pips in MT4?

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The first thing that a novice trader finds unusual when using the MetaTrader 4 platform for the first time is the calculation of pip values ​​and their conversion to dollars. We generally measure performance in terms of percentage profit or cash. Here’s what you need to know about pip counting on MT4:

PIP, also known as percentage interest point or price interest, is a unit of measure for the movement of a currency that represents the smallest price increase for a particular pair. For example, one pip equals 0.0001 for GBPUSD or EURUSD. However, one pip is equal to 0.01 for JPY pairs.

You must keep in mind that one pip on EURUSD, EURNZD and USDMXN is equal to a price difference of 0.0001 points. So a one pip gain would occur if the price of EURUSD, EURNZD or USDMXN rose from 1.3001 to 1.3002.

These figures vary slightly for JPY, GBPJPY, crypto, gold and a few others. You have to keep in mind that one pip on these currency pairs is equal to a price change of 0.01. Therefore, the price will increase from 156.32 to 156.33 if the difference is one pip.

Pip value = (one pip/exchange rate) x lot size

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A pip is an actual hundredth of one percent (1/100 x 0.01) located at the fourth decimal point (0.0001). One basis point equals one pip. The bid-ask spread of a forex quote is expressed in pip units.

When calculating pips in the MT4 application or on the MetaTrader 4 desktop, you need to remember that one pip is equal to 0.0001 for major pairs and 0.01 for yen pairs. In addition, you need this platform to see incremental value when trading another MT4 asset live.

Pips across two points on the MetaTrader 4 price chart can be determined as follows:

Place a horizontal line on the top level and another on the bottom level. Then measure the distance between the two lines by subtracting the value of the lower line from the position of the upper line.

This somewhat more difficult and time-consuming method can be used on MT4 as well as on platforms without any pip calculation tools.

MT4 offers a tool that is quick and easy to use. To activate the crosshair cursor and use this tool, you must press the mouse wheel. We are used to scrolling web pages up and down using the mouse wheel. The page scrolls up when we move the mouse wheel forward and down when we move the mouse wheel back. However, the mouse wheel has another purpose:

Press the mouse wheel and hold the cursor on the MT4 price chart. When you hear a click, the mouse crosshair cursor should appear on the graph.

If your mouse doesn’t support this feature, don’t worry. Another way to toggle the mouse crosshair pointer on the price chart is as follows: On the Line Study toolbar, there is a “Crosshair” function at the top. Simply click on it and the mouse cursor will appear.

Once the crosshair is active, move the cursor to one of the chart points, press and hold the left mouse button, then drag the cursor to the other point while still holding the left button.

Three numbers appear to the right of the cursor. The start and end position of the crosshair move you just made is represented by the first number, which is the number of bars or candlesticks that are placed between them. Additionally, the second number represents the difference in points between the two price tiers. The price of the aiming cursor is displayed in the third number.

All you need to do is add a pip counter. You can add a free indicator to your price chart if you want the pip counter indicator to count the pips of your open positions in MetaTrader 4. You can download the pip counter indicator for free.

In addition, you can also count the stones manually; however, this is a bit more complicated and time-consuming. If you are familiar with how to read pips and what is the change in one pip for a particular currency pair, you will easily be able to count pips by hand.

However, we recommend using a calculator or automatic pip counter to ensure accuracy and save time, energy and stress.

On MetaTrader 4, unlike most trading platforms, it is relatively simple to calculate the pip distance between any two positions on the price chart. When you want to set target orders and stop loss, you need to be able to count pips. You need to know the pip distance between your entry level and the level where you want to place your stop loss, for example.

How much does it cost to move one pip in the desired currency is undoubtedly one of the most common questions that any seasoned MT4 user will ask.

The fact is that any deal in the forex markets still depends heavily on understanding how much one pip or one point changes the currency. If you do not know this parameter, you will not be able to determine the reward risk.

Therefore, the above two approaches are the easiest and most popular among forex traders if you need to calculate a pip value on MT4.

How do I measure pips in MT4?

Use the “Croshair” tool from the MT4 platform to measure the pip values ​​in the platform. Click the Crosshair button in the upper left corner of the chart to calculate the distance between two prices.

How do I calculate pips on MT4 mobile?

You must use a trend line. Draw a trend line, but don’t drop it right away. Look at the upper left corner of the chart while maintaining the trend line. The center of the three brackets is where the pips are.

How to count pips on MT4 Android

You can either use the MetaTrader 4 app for Android or view the platform directly online. You will then follow exactly the above method.

How to count pips on MT4 iOS

You can use the same login username and password you use to access your account on your Mac or PC with XM MT4 iPhone Trader to log into your account in the native iOS app. Once you’ve done that, you’ll do the same with the trendline.

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