When I trade a CFD, how much am I trading?
FXCM uses a "lot-based" trading system. This allows our platform to aggregate all client positions into standardised trade sizes, simplifying the process of trading in several different markets on one account. It also allows the platform to track profits and losses, as well as account balances such as margin and equity, all in one currency. This greatly simplifies a trader's profit, loss, and risk calculations.
For all equity indices except the SPX500, when trading 1 contract you will have 1 pip of profit or loss for every 1 point that the CFD price moves. For the SPX500, you will have 1 pip for every 0.1 point move in the CFD price.
For Oil, Gold, and Silver, you will have 1 pip of profit or loss for every cent the CFD price moves.
You will notice that for all CFD products, the last digit quoted in the price is the "pip."