What happens when you press Buy
What you learn in 3 minutesA trade looks like one action on screen, but it is four separate steps: the order leaves your platform, it gets filled at a price, it becomes an open position, and it ends when you close it. Each step is where a cost can attach, so knowing the steps tells you where your money goes. A single pip on one standard lot of USD/INR is ₹10, and that number follows the position from the moment it opens until the moment it closes.
One order path on USD/INR at 83.2500
| Step | Amount | Note |
|---|---|---|
| Order placed | Buy 1 standard lot USD/INR | You press Buy on the platform; the request leaves your device. |
| Fill price | 83.2500 | The price at which the broker matches your order. |
| Open position | 1 standard lot at 83.2500 | The trade is now live on your account; nothing is settled yet. |
| Close price | 83.2510 | You close ten pips above the fill. |
| Pip value | ₹10 per pip | 100,000 × 0.0001 = ₹10 on one standard lot. |
| Gross result | ₹100 | 10 pips × ₹10 per pip = ₹100 before any charges. |
| Costs | Varies | Spread, commission and any swap differ between brokers and are not fixed here. |
| Net result | ₹100 minus costs | The figure you keep after the broker's charges are applied. |
The broker may round the fill price, quote a spread at the moment of execution, charge a commission per lot, and apply a swap if the position is held overnight. All of these vary between brokers, so the net figure can be lower than the gross figure shown.
The mistake people make here
Many beginners watch only the open position and forget that the close is a separate step with its own price. They also treat the gross result as the money they keep, when the spread and any commission have already been taken somewhere along the path. The fix is to note the fill price, the close price and the costs as three separate numbers, then check the account balance after the close. If the balance does not match the gross result, the difference is the cost of the path, not an error in the arithmetic.Check yourself
You buy 1 standard lot of USD/INR at 83.2500 and close it at 83.2525. What is the gross result in ₹?
The move is 25 pips. At ₹10 per pip on one standard lot, 25 × ₹10 = ₹250 before costs.
You buy 0.10 lots of USD/INR and the price moves 20 pips in your favour. What is the gross result in ₹?
One pip on 0.10 lots is ₹1, because 0.10 × ₹10 = ₹1. So 20 pips × ₹1 = ₹20 before costs.
Your gross result is ₹100 and the broker's total charges come to ₹35. What is the net result?
₹100 − ₹35 = ₹65. The ₹35 is the cost attached to the order path, not a change in the pip value.