What is the point value in currency trading on the stock exchange?

Imagine that there is a dealer who has a commodity for the transfer of hours alarm imported from abroad at a cost of $ 10 per hour ,

It no doubt must sell
At a higher price from $ 10 to turn a profit .. but how will a profit?

This depends on the profit margin of any difference between the sale price and purchase price

The change of exchange rates to be parts of the millennium in most of the time if I bought a small amount of currency at a higher price and sold parts of the
AZ Undoubtedly you will not get the win glory

In order to be able to get a good profit in these minor changes to currency rates, must be buying and selling huge quantities of
Currency

To calculate together to see the difference:
Suppose now that the price of the euro against the dollar

EUR /USD = . 9850

And you expect that the euro will rise to

EUR/USD = .9851 The meaning of one point.

Let's see How many are going to win the high euro one point when we buy 1000 euros.

When we buy 1000$ euros against which we will pay 985$, which will result in 9

Now you have 1000 euros

If the price rose one point and become EUR/USD = .9851

We will sell what we have to euros, we will sell the 1000 euros and we will get an interview on the new price 985.1 $

Profit = selling price - purchase price

.985.1 – 985 = .1 cent

That any profit resulting from the sale of 1000 euros at the height of one point is 10 cents

If we assume that we sold the euro at a height of 50 points won will be $ 5. (50 points * 10. Nqtpaluahdp of)

A simple profit is not worth it ..!!

But what if we bought a 100.000 euro instead of 1000 euros on the same the previous prices?

Will buy 100.000 euro and against which we will pay $ 98,500 to the price first

Us now 100.000 euro

When we sell the euro to rise after the price for a single point we will get a 98 510$

Profit = selling price - purchase price

=98510 – 98500 = 10$

That any profit resulting from the sale of 100.000 euro at a height of one point is 10 $

If we assume that we sold the euro at a height of 50 points won will be $ 500 (50 points * $ 10 per point)

A good profit .. Alice as well?

We will complete this section in the next issue