Profit and loss in currency trading

Profit and loss in currency trading

We traded for profit, and profit by unknown

Is that you buy at one price and sell at a higher price in the market bullish

Or to sell at one price and buys at a lower price in the market bearish

In both cases must be the highest selling price of the purchase price

But may the winds do not blow as ship ..!!

May expect that the price will rise, whereupon the currency bought, but you may find that the price of the currency has fallen in contrast to your prospect, and sell this because Sidaok
At a lower price than the purchase price and thus will suffer from loss

This happens in any of the areas of trade anyway ...
Of course, is important for you to know how the calculated result of a deal you made to a currency .. It made a profit or loss

In order to learn the profit or loss in any currency use the following equation:

Profit or loss = number of contracts (Lott)*the value of the point* spread point

If the result was positive, although the gross profit was a negative loss

Take the examples assuming we are dealing with a company has a point value of each currency equal to the values that we have mentioned in previous

Example 1

Suppose you bought 1 lot of Fairy at ( GBP/USD = 1.4926 )

Then sold it at a price ( GBP/USD = 1.5085 )

How much profit or loss made by?

Answer:

First calculate the difference in points of the equation for pound and the euro.

Difference points = (sale price - purchase price) * 10 000

= (1.4926 - 1.5085)* 10000 = 159

We sold any difference of 159 points profit

Now calculate the actual profit:

Profit or loss = number of contracts (Lott) * * the value of the point spread point.

1* 159 * 10 = 1590 $ On the basis that the value of one point of the fairy = 10$

We have made a profit = 1590$