Ok Guys. I have been studying forex trading now for about a year or more off and on. I have been through most indicators and done many tutorials on trading. I am very interested to go further with this. However now that I have began serious paper trading I have uncounted something that I just can’t work out. Every tutorial has taught me that a trade of 1 LOT on the forex is 100000 units and a mini lot is 10000 units.
So placing a trade of 1 LOT it should move about $1000 to the margin.
And placing a trade of 1 mini LOT it should move about $100 to the margin.
So when trading 1 LOT the profit should be around $10 a pip and when trading a mini lot the profit should be around $1 a pip. I am using Metatrader 4 and while trading you can use the crosshairs to measure pips across the screen. During trade I can see the profit in the profit column. When I place a 1 LOT trade I am sure it is a full lot because it moves over $1000 from the balance to the margin. However during the trade if the trade goes up by 20 pips instead of showing $200 profit it shows just $20 profit. That is what I would expect on a $100 or mini lot trade.
Why dose Metatrader dislike me so. What am I doing wrong?