XM (XMTrading): XM pips calculator, how to calculate pips, how to use it and the latest display

XM (XMTrading): Learn about XM’s pips calculator, how to calculate pips, how to use it, and the latest display. A currency pips calculator is necessary for XM Trading’s FX trading, and we’ll explain how to display and use the pips. If you’re trading with XM, you need to understand pips to be able to interpret important information like profits and losses and spreads.

XMtrading
What are XM pips? Basic knowledge for FX beginners
How pips are calculated at XM
How to use XM pips profit and loss calculator
1. 💡 What is XM’s pips profit and loss calculator?
2. 🛠 Basic operation of XM pips profit and loss calculator
XM pips FAQ

XMtrading

Operating company	Tradexfin Limited Fintrade Limited
Head office location	Unit E, F28, Eden Plaza, Eden Island, Republic of Seychelles
Founding year	2009
Financial License	（FSA）SD010：Tradexfin Mauritius Financial Services Commission (FSC：)：Fintrade Limited Cyprus Securities and Exchange Commission (CySEC)：Trading Point of Financial Instruments Ltd
Language support	English、日本語、Malay、Thai
Platform	MetaTrader 4 (MT4)／MetaTrader 5 (MT5)
Service Countries	Over 190 countries
Number of users	Over 1 million accounts
Max Leverage	1000x
Eligible products	Forex、Metal、Stocks、Equity Indices / Index CFD、Energy CFD、Commodities、Cryptocurrency

XMTrading Open Account Free

What are XM pips? Basic knowledge for FX beginners

Below is a simple summary of the basics of XM’s “pips” for FX beginners.

What are pips?

An indicator representing the smallest unit of price movement in FX trading.
It is a unit used to measure price fluctuations in currency pairs and is used to calculate profits and losses.

📌 Example：

USD/JPY rose from 110.00 to 110.01.
The fluctuation range in this case is 1 pip.

Calculating pips by currency pair

Most currency pairs (e.g., USD/JPY, EUR/USD) are often displayed to four decimal places.
However, for pairs involving the Japanese Yen, 1 pip is displayed to two decimal places.

Relationship between pips and profit

In FX, profit is calculated as follows: Trading volume × pips × currency value.

For example:

USD/JPY 1 lot (100,000 units)

1 pip = 0.01 yen

Profit = 100,000 × 0.01 yen = 1,000 yen

📌 The larger the trading volume, the greater the profit or loss for the same number of pips.

Features of pips display at XM

On XM’s trading platforms (MT4/MT5), most currency pairs are displayed in five-digit or three-digit format.

The fifth digit (1/10 of a pip) is called a pipette, allowing you to see more precise price fluctuations.

Example:

USD/JPY = 110.123 → 110.12 is 1 pip (2 decimal places)

How pips are calculated at XM

Below is an easy-to-understand explanation for FX beginners on how to calculate pips at XM.
This is extremely important knowledge for understanding profits and losses in trading. There is currently support for the content, so you can make official inquiries.

What are pips? Review

Pips = the smallest unit of exchange rate.

Example:

USD/JPY 110.00 → 110.01 → 1 pip

EUR/USD 1.1000 → 1.1001 → 1 pip

*For currency pairs involving the Japanese yen, 1 pip is calculated to the second decimal place.
*For other currency pairs, 1 pip is calculated to the fourth decimal place.

Basic calculation formula

Profit (loss) = Trading volume × Value of 1 pip × Number of pips

① Calculating the value of 1 pip

The value of 1 pip varies depending on the currency pair.
Currency pairs involving the Japanese yen (e.g., USD/JPY): 1 pip = 0.01 yen x trading volume (currency units)
Example: USD/JPY 1 lot = 100,000 units 1 pip = 0.01 yen x 100,000 units = 1,000 yen
Currency pairs not involving the US dollar (e.g., EUR/USD): 1 pip = $0.0001 x trading volume
Example: EUR/USD 1 lot = 100,000 units 1 pip = 0.0001 x 100,000 = $10

② Calculation of profits and losses

Profit (yen) = Value of 1 pip × Number of pips of price movement

Example 1: Profit calculation for USD/JPY

Trade: Buy 1 lot (100,000 units)
Buy price: 110.00, Sell price: 110.50
Price movement: 110.50 – 110.00 = 50 pips
1 pip = ¥1,000
Profit = 50 × ¥1,000 = ¥50,000

Example 2: Profit calculation on EUR/USD

Trade: Buy 1 lot (100,000 units)
Buy price: 1.1000, Sell price: 1.1050
Price movement: 1.1050 – 1.1000 = 50 pips
1 pip = $10
Profit = 50 × $10 = $500
Converted to Japanese Yen: 500 × ¥110 = ¥55,000 (example rate)

Pipette (1/10 pips) calculation at XM

In MT4/MT5, the value may be displayed as 5 digits (e.g., USD/JPY 110.123).
The third decimal place is a pipette = 0.1 pips.
Calculation formula: 1 pipette = 1/10 of a pip.

Example：

1 USD/JPY lot = 100,000 units
0.1 pips (pipette) = 0.1 x 1,000 yen = 100 yen

How to use XM pips profit and loss calculator

Here’s a detailed, easy-to-understand explanation of how to use XM’s pips profit/loss calculator for FX beginners. Using this, you can easily check your profit/loss without any complicated calculations. Simply select a value and the answer will appear. It can be accessed from the dedicated page on the official website’s homepage. It can also be used for different types and stocks. It’s recommended to consider conditions and margin requirements in advance. It’s recommended to use the function to compare investment stocks.

💡 What is XM’s pips profit and loss calculator?

This is an official XM web-based calculation tool, not an official website or MT4/MT5 tool.
Just enter the currency pair, trading volume, and price movement (pips) to automatically calculate profits and losses.
This tool is especially useful for beginners to FX trading, as it helps them intuitively understand how much a pip is.

🛠 Basic operation of XM pips profit and loss calculator

① Access the official XM website

Search for “XM Profit Calculator” or “XM Profit Calculator”
Go to the official tool page

② Enter the required information

Item	Explain
Currency Pairs	Example: USD/JPY, EUR/USD
Trading volume (number of lots)	1 lot = 100,000 units, 0.1 lot = 10,000 units, etc.
Position Type	Buy, Sell
Entry Price	The price at which the transaction began
Settlement price (current price or target price)	Selling/settlement price

③ Click the “Calculate” button

After entering your information, click the “Calculate” button to instantly see the results.

Displayed items:

Profit/Loss (currency units: yen or dollars)

Number of pips

Profit conversion based on lot size

④ Check the results

Profit/Loss = Position Type (Buy/Sell) x Price Movement x Lot Size
See your profit/loss at your target price at a glance
Perfect for determining your stop-loss and take-profit lines

XM pips FAQ

Below are some frequently asked questions (FAQs) about pips at XM, organized for FX beginners. Pips are essential knowledge for understanding profits, losses, and trading strategies. They are a common tool for investing in real-time markets, including the USD/JPY, EUR, gold, stocks, precious metals, and cryptocurrencies. Be sure to understand the risks before using them.

Q1. What are pips?

This indicator represents the smallest unit of exchange rate movement.

Used to calculate profits and losses in FX trading.

📌 Example:

USD/JPY 110.00 → 110.01 → 1 pip

EUR/USD 1.1000 → 1.1001 → 1 pip

Q2. What is a pipette?

One-tenth of a pip

MT4/MT5 may display five digits.

Even small price movements can be tracked in detail.

Example: USD/JPY 110.123 → 3 decimal places = 0.1 pips (1 pipette)

Q3. How to calculate pips?

Calculate the value of 1 pip for each currency pair.

USD/JPY (Japanese Yen related): 1 pip = 0.01 yen × trading volume.

EUR/USD (US Dollar related): 1 pip = 0.0001 dollars × trading volume.

Profit (Loss) = Value of 1 pip × Number of pips of price movement × Number of lots.

Q4. How can I know how much profit I will make in pips?

It’s easy with the official XM Pips Profit/Loss Calculator.
Just enter the currency pair, lot size, entry price, and settlement price, and your profit/loss will be automatically calculated.

Q5. Are pips calculated differently depending on whether the currency is Japanese Yen or US Dollar?

Yes. The calculation method is slightly different.
Japanese yen-related → 1 pip is calculated to the second decimal place.
US dollar-related → 1 pip is calculated to the fourth decimal place.
Consideration is required when calculating profit and loss, as the exchange rate also plays a role.

Q6. What are the benefits of learning pips?

Understand profit and loss estimates
Use this information to set stop-loss and take-profit levels
Improve the accuracy of your trading strategies and risk management

Q7. Should beginners remember how many pips it takes to make a profit?

At first, it’s important to get a sense of how much 1 pip equals.
Profits and losses will vary depending on trading volume and currency pairs.