Forex trading has become increasingly popular in recent years, and one of the most important concepts to understand is pips. Pips are the smallest unit of measure used in forex trading, and they are used to indicate the price movement of a currency pair. If you are new to forex trading, learning how to read pips in MT4 is essential. This article will provide an in-depth explanation of how to read pips in forex MT4.
What are Pips?
Pips are the smallest unit of measure used in forex trading. They are used to indicate the price movement of a currency pair. A pip is the fourth decimal place in a currency pair. For example, if the EUR/USD pair moves from 1.3000 to 1.3001, that is a movement of one pip. If the EUR/USD pair moves from 1.3000 to 1.3100, that is a movement of 100 pips.
Pips are important because they are used to calculate the profit or loss of a trade. The value of a pip depends on the currency pair being traded and the size of the trade. For example, if you are trading the EUR/USD pair and your trade size is 1 lot, then the value of one pip is $10. If your trade size is 0.1 lots, then the value of one pip is $1.
How to Read Pips in MT4
MT4 is a popular forex trading platform that is used by many traders around the world. Reading pips in MT4 is relatively easy, and there are several ways to do it.
1. Use the Market Watch Window
The Market Watch window in MT4 displays the current prices of the currency pairs that you are trading. To view the Market Watch window, click on the “View” menu and select “Market Watch.” The Market Watch window will appear, and you will see a list of currency pairs that you are trading.
To view the current price of a currency pair, simply look at the “Last” column. The number in this column represents the current price of the currency pair. If you are trading the EUR/USD pair, for example, and the current price is 1.3000, then one pip would be 0.0001. If the price moves up to 1.3001, that would be a movement of one pip.
2. Use the Trade Terminal
The Trade Terminal in MT4 displays the details of your open trades. To view the Trade Terminal, click on the “Trade” tab at the bottom of the screen. The Trade Terminal will display a list of your open trades, including the currency pair, trade size, open price, current price, and profit/loss.
To view the current price of a currency pair, simply look at the “Current Price” column. The number in this column represents the current price of the currency pair. If you are trading the EUR/USD pair, for example, and the current price is 1.3000, then one pip would be 0.0001. If the price moves up to 1.3001, that would be a movement of one pip.
3. Use the Chart
The Chart in MT4 displays the price movement of a currency pair over time. To view the Chart, click on the “Charts” tab at the bottom of the screen. The Chart will display the price movement of the currency pair that you are trading.
To view the current price of a currency pair, simply look at the price on the right-hand side of the chart. The number in this column represents the current price of the currency pair. If you are trading the EUR/USD pair, for example, and the current price is 1.3000, then one pip would be 0.0001. If the price moves up to 1.3001, that would be a movement of one pip.
Conclusion
Understanding how to read pips in forex MT4 is essential for successful trading. Pips are the smallest unit of measure used in forex trading, and they are used to indicate the price movement of a currency pair. Learning how to read pips in MT4 is relatively easy, and there are several ways to do it. By using the Market Watch window, Trade Terminal, and Chart, you can easily view the current price of a currency pair and calculate the profit or loss of a trade.
