What “One Minute” means
In forex, “One Minute” usually refers to using one-minute time intervals as the basis for analysis and action. Practically, that can mean:
- Looking at one-minute candles (open, high, low, close) to measure what happened during each minute.
- Making a decision or updating a plan based on information available at the end (or near the end) of a one-minute bar.
- Setting rules for entry and exit that are evaluated on a one-minute schedule.
A worked example is a transparent numerical scenario that shows the mechanics step by step with stated assumptions. It does not predict a future outcome; it shows how calculations and timing can work under simplified conditions.
How a worked example works (definition + inputs)
A typical “one-minute” worked example needs two parts:
- Timeframe mechanics: Which moment is used to decide, and which moment is used to calculate results.
- Cost mechanics: How you convert price movement into profit/loss, including spread and other trading costs.
To keep the example verifiable, we must define assumptions, such as:
- Quote format (for example, a pair quoted like “X/Y”).
- Direction (buy or sell).
- Position size in units that determine monetary profit/loss.
- Entry and exit prices chosen from one-minute intervals.
- Spread assumption (difference between bid and ask) and any commission assumption.
Worked numerical scenario (fully stated assumptions)
Goal: show what happens when “One Minute” rules are evaluated on one-minute bars.
Assumptions (all fixed for the example):
- You trade a forex pair quoted with 5 decimal places (pip size = 0.00001).
- Position size: 10,000 units of the base currency.
- You use a buy order.
- Spread at entry is 0.00010 (10 pips in this 5-decimal representation). Commission is 0 for simplicity.
- You decide using one-minute bars. The bar ends at the decision time, and you execute at the next immediately available prices.
- For the price path, we use a simplified two-minute snapshot:
- At the end of the decision minute (Minute 1 close), the mid price is 1.20000.
- During the next minute (Minute 2), the mid price rises to 1.20100 and then you exit at the end of Minute 2.
Step 1: Determine entry price (buy with spread).
- Mid at Minute 1 close: 1.20000.
- For a buy, assume the execution price is ask = mid + spread.
- Entry ask = 1.20000 + 0.00010 = 1.20010.
Step 2: Determine exit price (assume spread is paid similarly).
- Mid at Minute 2 close: 1.20100.
- Assume exit executes at the bid = mid − spread.
- Exit bid = 1.20100 − 0.00010 = 1.20090.
Step 3: Compute price movement in pips.
- For a buy, profit depends on (exit bid − entry ask).
- Exit bid − entry ask = 1.20090 − 1.20010 = 0.00080.
- With 5-decimal pip size 0.00001, 0.00080 = 80 pips.
Step 4: Convert pips to monetary value (simplified).
- To avoid needing live contract conversion rules, we use a common simplified mapping: 10,000 units = $10 per pip when the quote currency is USD for that pair.
- Profit = 80 pips × $10/pip = $800.
What this example is showing:
- “One Minute” governs the timing (where entry/exit snapshots are taken).
- Spread reduces the effective movement from the mid-price change (from 1.20000→1.20100 = 100 pips mid change, down to 80 pips effective change due to spread on both entry and exit assumptions).
Limitations and failure modes (what can break the example)
A worked example stays useful only if its assumptions hold. Common limitations include:
- Execution timing mismatch: You may not get the exact prices at the one-minute close; latency and order-book changes can shift entry/exit.
- Spread and liquidity variability: Spread can widen or narrow inside the minute and may differ at entry versus exit.
- Position sizing conversion differences: The $/pip mapping depends on contract specs and the pair’s pricing conventions; changing assumptions can change the profit calculation.
- Over-simplified price path: Real price movement is not a smooth two-point change; intraminute highs/lows can matter depending on stop/limit rules.
These are not “guarantees” of loss or success—just reasons the same method can produce different results across conditions.