Trading & Investing
Pips moved
Converts the price move into pips, signed by the direction.
The Formula
Pips = (Exit - Entry) x 10,000 x Direction
Converts the price move into pips, signed by the direction.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| E | Entry price | rate | Price the position was opened at. |
| X | Exit price | rate | Price the position was closed at. |
| d | Direction | count | Plus one for long, minus one for short. |
What Each Symbol Means
Erate
Entry price
Price the position was opened at.
Xrate
Exit price
Price the position was closed at.
dcount
Direction
Plus one for long, minus one for short.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate forex profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Forex Profit, filed under Finance. Every number the guide produces comes from substituting into this one line.