Pips vs Points, Contracts vs Lots - what's the difference if any?

[iwonbigbro]

I'm new to trading.  I'm currently experimenting with demo accounts and backtesting.  Last night I was trying to setup a short with a 1% risk, but all the research I've done up to this point, refers to everything in lots and pips.  The UK IG platform has everything labelled as contracts and points.  Are they essentially the same thing?  Erm.  "The British spelling for..." 

 

I'm trying to use https://www.babypips.com/tools/position-size-calculator to setup the position.  That's in pips and lots.  So I'm just trying to make sure everything will map between the two different sets of terminology if that's all it is.

Edited March 24, 2021 by iwonbigbro

[iwonbigbro]

Ok, I think 1 contract is measured in USD.  So 1 contract is == 1 USD which is equal to 0.1 lots.  Or a mini lot.

Still not sure on pts vs pips and whether they are just equivalent terms.

[Nalda]

1 contract = say 110jpy yen or $1.00 USD,

A pip is just the tiny movement.

So if you have 1contract valued at $1.oo USD and it move one tiny pip that is one movement you ave earned $1.00 USD.

If you have 20.00 contract that is $20.00USD when it moves 1 pip or a teensy tic

So If your trade moves 10 pips you have earned 200.00USD

pip versus point?? Depends on how many numbers are after decimal point. Anyway hope thos pips of info help. It is hard

[Nalda]

above should be 100yen not 110 yen