Foreign exchange trading profit and loss calculation

　　The following example will demonstrate the process of profit and loss calculation for you:


Assuming the current EUR/USD The quotation is 1.4616/19, which means you can use 1.4619 Buy in USD 1 Euro, or sell 1 Euro simultaneous purchase 1.4616 USD.
Assuming you predict that the euro will appreciate against the US dollar, therefore you are willing to buy EUR (Simultaneously selling USD)And wait for the exchange rate to rise.
So, you use 146,190 Buy in USD 100,000 euro (100,000 x 1.4619). utilize 100:1 The margin leverage of your margin account needs to have 1,461 USD.
As you expected,EUR/USD Ascend to 1.4623/26. In order to achieve profits, you 1.4623 Selling at a price of 100,000 Euro, while obtaining 146,230 USD.
You previously used $146,190 Buy in USD 100,000 Euro, sell now 100,000 Euro and exchange back 146,230 US dollars. The difference between them is 4 Points, i.e $40 ($146,190 - 146,230 = $40)。
　　Total profit:$40


In the same example, assuming you are still in the EUR/USD Quotation in 1.4616/19 Time use 146,190 Buy in USD 100,000 euro.
However, this time EUR/USD fall to 1.4611/14To reduce losses, you choose to enter this price range and sell 100,000 Euro and exchange it back $146,110 USD.
You previously used 146,190 Buy in USD 100,000 Euro, sell now 100,000 Euro and exchange back 146,110 The difference between US dollars is 8 Points, i.e $80 ($146,190 - $146,110 = $80)。
　　Total loss:$80

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