IC Markets
You worked out that a 40-pip move on 0.5 lots should be USD 200, but your account shows USD 176. The difference is not an error; it is the set of costs and conversions that sit between a price move and your balance. This guide names every one and shows how to get your own number to match the platform.
1. Pip value depends on the pair and lot size
A pip is worth about USD 10 per standard lot on pairs quoted to four decimals with USD as the quote currency, such as EUR/USD. On a mini lot (0.1) it is about USD 1, and on a micro lot (0.01) about USD 0.10. For pairs where USD is not the quote currency, such as USD/JPY or AUD/CAD, the pip value is different and depends on the current exchange rate. Using a flat USD 10 for every pair is the most common calculation mistake. The pip calculator gives the exact figure.
2. You crossed the spread
The chart usually plots the bid or the mid price. You buy at the ask, which is higher, and close that buy at the bid. So a move that looks like 40 pips on the chart is 40 minus the spread in your account. On a 1.5-pip spread that is 38.5 net pips before anything else.
3. Commission
Raw and ECN accounts charge a commission, often around USD 3.5 per side per standard lot, so USD 7 per round-turn lot, deducted from your result. On 0.5 lots that is USD 3.50. Standard accounts fold this into the spread instead.
4. Swap on overnight positions
If the position was open at any daily rollover, a swap charge or credit was applied for each night, with triple charged on Wednesday. Several nights of swap on a decent-sized position is easily a few pips of profit. The swap guide covers this.
5. Account currency conversion
If you trade a pair whose profit is in a currency other than your account currency, the broker converts it at its own rate, which carries a small spread. A EUR/GBP trade producing a GBP profit, converted into a USD or rand account, loses a fraction of a per cent in the conversion.
A worked example
| Step | Value |
|---|---|
| Chart move | 40.0 pips |
| Less spread crossed | -1.5 pips |
| Net pips | 38.5 |
| Lot size | 0.50 (USD 5 per pip on EUR/USD) |
| Gross P/L | +USD 192.50 |
| Less commission (USD 7 per lot round-turn) | -USD 3.50 |
| Less swap (3 nights, one triple) | -USD 6.00 |
| Net credited | +USD 183.00 |
Your quick USD 200 estimate assumed 40 clean pips, USD 10 per pip per lot, and no costs. The real figure is USD 183. Every deduction is standard and disclosed.
Nadia's spreadsheet always overstated her profit by 10 to 15 per cent. She had been using USD 10 per pip for USD/JPY, where the pip value at current rates was closer to USD 6.80 per lot, and she had ignored commission and swap. Once she pulled the pip value from the calculator and added commission and swap columns, her sheet matched the platform to the cent.
Rebuild your calculation with the exact pip value from the pip calculator, then subtract the spread you crossed, the commission, and any swap. Do this for a few closed trades until your number matches the platform, and you will know your true cost per trade.
The chart shows a price move. Your account shows that move times the correct pip value, minus the spread, minus commission, minus swap, converted to your account currency. The number that surprises people is almost always a wrong pip value on a non-USD-quote pair, plus ignoring the round-trip cost. Use the calculators and the gap closes.
Frequently asked
Why is my forex profit less than I calculated?
The usual causes are using a flat USD 10 pip value on a pair where it is different, not subtracting the spread you crossed on entry, ignoring the commission on raw accounts, ignoring overnight swap, and not accounting for account-currency conversion on non-quote-currency pairs.
How much is a pip worth?
About USD 10 per standard lot on pairs quoted to four decimals with USD as the quote currency, USD 1 per mini lot, USD 0.10 per micro lot. For pairs where USD is not the quote currency it depends on the current exchange rate. Use a pip calculator for the exact figure.
Does the spread reduce my profit?
Yes, once per round trip. You buy at the ask and sell at the bid, so a move on the chart is worth that move minus the spread in your account. On a wide-spread instrument like gold this is significant.
How do I make my calculation match the platform?
Take the exact pip value from a pip calculator, multiply by your net pips (chart move minus the spread), then subtract commission and any swap, and convert to your account currency. Check it against a few closed trades.
Which calculator should I use?
The pip calculator for pip value, the profit calculator for a full trade result, and the lot size calculator to size a trade to a fixed risk. Together they let you verify any trade before and after you take it.