If you do an online search for a reliable training Forex blog or website, you can find many Forex courses that claim to be able to become a successful trader in a short period of time.
(prHWY.com) November 18, 2012 - Utah, AK -- Now that we calculate the value of a pip, we can delve into the most interesting part, namely to use a Forex calculator of profit and losses. Again, fortunately, there are great formulas to remember. To explain this we start with an example of Profit calculation:
1. Let's start a trade and we look at the EUR/USD. Suppose, that bid/ask prices are as follows: 1.3460 / 1.3462 meaning you can sell or buy 1 euro to 1.3460 to $ 1.3462.
2. We think that the Euro will gain ground against the U.S. Dollar and then decide to buy and
CAD/USD.
3. We begin the trade: taking advantage of leverage, buy ˆ 100,000 paying $ 134,620 (ask price).
4. In a short time, we see that the Euro has actually appreciated against the dollar and the couple bought the value 1.3464/1.3466. We decide to sell ˆ 100,000 and look at the price Bid: 1.3464. The revenue is therefore $ 134,640.
We bought $ 1.3462 to ˆ 100,000, for a total of $ 134,620. We then decided to sell ˆ 100,000 at $ 1.3464, receiving $ 134,640.Latest blogpost:
Advices for Automated Forex Trading Beginners.The difference is 2 pips, and the profit in dollars is $ 134,640 - $ 134,620 = $ 20 (or 0.0002 x 100,000 = 20).
Loss is calculated in the same way: if in the example above the euro had lost significant ground against the dollar and the couple were dropped in value, the loss would be as follows:
1. 100,000 euros can be purchased by paying $134,620.
2. Euro weakens and falls to 1.3456/1.3458. We decide to limit their losses and sell ˆ 100,000 at 1.3456, receiving $ 134,560.
We bought 100,000 ˆ ask price with spending $134,620 to $1.3462.Social profile:
money trading. Later to limit the damage we have sold 100,000 euro to $1.3456, pocketing $ 134,560. The "Loss" in this case was $60.
The Japanese Yen (JPY) is a special case; the value is calculated by taking the second decimal point of exchange, or 0.01.
That is all. Remember that when you sell a coin, you have to look at the bid price, and you must keep in mind when you buy the Aak price.To know more
lfcurrencytrading.biz
###