Profit and loss in trading currencies

Profit and loss in trading currenciesProfit & LossWe traded for profit, and profit by Anonymous:Is that you buy at one price and sell at a higher price in the market upward.Or to sell and buy at a lower price in the market downward.In both cases must be higher than the selling price of the purchase price.But the wind may take place are on our side ..!!May expect that the price of the currency will rise whereupon buy, but you may find that the price of the currency fell to reverse your prospect,This Sidaok sell at a lower price because of the purchase price and thus will suffer the loss.This happens in any area of ​​trade in any case ...Of course, is important for you to know how to calculate a result of a deal you made to a currency .. Is it made a profit orLoss.In order to learn the profit or loss in any currency use the following equation:Profit or loss = number of contracts (lots) * * points difference point value.If the result is positive, although a profit was a negative result was a loss.Take the examples assuming we are dealing with a company has a point value of each currency is equal to the values ​​mentioned inPrevious page.Example 1GBP / USD = Suppose you bought 1 lot of the pound at 1.4926GBP / USD = 1.5085 and then sold it atHow much profit or loss made by?Answer:First, calculate the difference in points of the equation for pound and the euro.Points difference = (sale price - purchase price) * 10000159 = 10000 * (1.4926 to 1.5085) =We sold any difference of 159 points profitNow we calculate the actual profit:Profit or loss = number of contracts (lots ______________)* difference points * point value.$ 1590 $ on the basis that the value of one point for LE = 10 = 10 * 159 * 1 =We have achieved a profit of $ 1590 =Example 2EUR / USD =. Suppose you bought a lot of 2 euros at 9762EUR / USD =. And sold it at 9793Vahsb how much profit or loss?Answer:First, calculate the difference in points of the equation for pound and the euro.Points difference = (sale price - purchase price) * 1000031 = 10000 * (0.9762 - 0.9793) =We sold any difference of 31 points profit.Now calculate how many actually wonProfit or loss = number of contracts (lots) * * points difference point value.$ 620 $ on the basis of the value of one point for the euro = 10 = 10 * 31 * 2 =We won in this deal $ 620Example 3USD / JPY = Let's say you purchased 3 lots of the yen at 123.08USD / JPY = 123.62 and sold it atVahsb your profit or lossAnswer:First, calculate the difference in points of the equation for Palin.1 - * (points difference = ((sale price - purchase price) * 10054 points loss - = 1 - * (100 * (123.08 to 123.62) =That's because we bought the yen at one price and we sold at a lower price Fallen currency indirectly.Now we calculate the actual lossProfit or loss = number of contracts (lots) * * points difference point value.$ 1296 $ on the basis that the price of one point to Lin = 8 - = 8 * 54 - * 3 =We have lost in this transaction of $ 1296.Example 4USD / CHF = Let's say you sold Lot 4 of the franc at 1.4356USD / CHF = 1.4500 and then purchased at aVahsb your profit or lossAnswer:First, calculate the difference in points of the equation of francs1 - * (points difference = ((sale price - purchase price) * 10000144 points profit = 1 - * (10000 * (1.4500-1.4356)) =This is because we sold the franc at a higher price than the purchase price Vafrenk currency indirectly.Now we calculate the actual profitProfit or loss = number of contracts (lots) * * points difference point value.$ 3456 = 6 * 144 * 4 =We won $ from selling us for 4 Alfrenk lot from him, and our purchase price less the amount of 3456And now you know the profit or loss of any deal as long as you learn the point value of each currency and the size of the contractSttajer who do, the information you get from the brokerage firm, which will choose to work with, thoughThe size of the points mentioned in the previous examples and the size of contracts is the most common size among brokerage firmsIn the currency market today.Standard account and the account sucking GRStandard & Mini accountKnow that the size of the contract that determines the point value.As we stated when we bought 1000 euros the value of one point = 10 cents.. But when we bought a $ 100,000 euros the value of one point = 10We said that the majority of companies deal in the size of contracts is equal to the Lout per equivalent of 100,000 units of currencyBasis.As we have stated, in a company where one Lot = 100,000 units of base currency the value of one point:. $ Value of one point for the euro = 10. $ Value of one point of the pound sterling = 10. $ Value of one point to Lin = 8. $ Value of one point of the Swiss franc = 6If you decide to deal with a brokerage firm based on the size equivalent to a meager one, you will open the Mazkrnah. Standard account This company has what is called the normal accountAn account that will be one in which Lot = 100,000 units of base currency and thus the value ofPoint for each currency as mentioned above.When you buy a lot of requests from the euro will buy 100,000 euros, if requested by Buy 2 euros will buy a lot200.000 euros and vice versa for sale.If you ordered a lot of yen will buy yen, equivalent to $ 100,000 depending on the price you buy it.And such an account be worth one point each currency as we mentioned earlier.As seen from the previous examples, the purchase and sale of the currency difference of 50 points only will you profit = $ 500, thisThe Plaut traded and traded that one of the B-2 lot will double profit to $ 1000 .. And so on.Stalmha of the facts that once you start monitoring the currency exchange rate changes on an ongoing basisDaily ranges from 80 to 300 points per day, up or down.Any $ if you were able to trade Plaut and one each on points difference of 50 points per day will achieve a profit equivalent to 500Or slightly less depending on the currency traded by ..But that has ratified the expectations ..But if your expectations have not ratified this could be a daily loss you ..!!The company does not profit nor loss Charkk ..!!And we will talk in detail later risk for the forex market.What we want you to understand now is that the standard account, which is equal to the value of one point as we have mentioned above mayYes, be very profitable but it may be a cause of heavy losses as well.If we assume that you have opened an account the amount of $ 2000 and began the process and lost by 50 points, meaning that you will loseThe $ 500 deducted from your account, you are in the process of any one lost 25% of your capital in which they operate.This is very dangerous, because of the expected one, especially at the outset to lose several consecutive transactions, theRepeat the previous scenario means that you and after your loss to only four transactions will lose the full amount, which opened itsAccount will not be able to trade only by adding the amount of new ..!!These considerations are very important and the nature of currency trading and risk-taking has been a solution to suchProblem.. Mini account provided quite a lot of brokerage firms account the so-called suction GRBefore you open an account with a brokerage firm will choose the type of account opened by whether it was a regular account or accountRooms sucking.Since the account is equal to suction GR mostly p  evil Regular AccountWhat does that mean?Account the normal size of the contract = 100,000 units of base currency, that is, per Lot =100,000 units.The suction in the account, the size of the contract GR = 10,000 units of base currency, that is, per Lot =10,000 units.When required to purchase 1 lot of Euros in the account sucking Rooms will be purchased, as well as EUR 10,000 for the LEAnd, when required to purchase 1 lot will be purchased yen yen equivalent of $ 10,000, according to the current price as well asFor francs.The small size of the contract in a mini account will make the point less than the value of ten times.And therefore would be to calculate the point value of sucking GR = Lout one in which 10,000 units as follows:. $ Value of one point = 1 euro. $ Value of one point = 1 poundThe value of one point to Lin = 80. $ Or 80 cents.The value of one point of the franc = 60. $ Or 60 cents.This is true in most of the companies now but may differ in some other companies.No different profit and loss account in the calculation GR sucking him in the account only normal that the value of the point vary.Take the examples of assuming that we are dealing with a company the value of one point for each currency, as we mentioned a while ago:Example 1USD / JPY = Let's say you bought 2 lots of the yen at 125.23USD / JPY = 124.60 and then sold it atVahsb Okhsartk profit in the calculation of sucking GR.Answer:First, calculate the difference in points of the equation for Palin.1 - * (points difference = ((sale price - purchase price) * 10063 points profit (because the output of plus). = 1 - * (100 * (125.23 to 124.60)) =Now count the actual profit:Profit or loss = number of contracts (lots) * * points difference point value.$ 100.8 = 0.80 * 63 * 2 =. $ As you can see has won in this deal = 100.8Example 2GBP / USD = Let's say you sold 3 lots of the pound at 1.5282GBP / USD = 1.5332 and then purchased at aVahsb your profit or loss in the calculation of sucking GR.Answer:First, calculate the difference in points of the equation for pound.Points difference = (sale price - purchase price) * 10 00050-point loss (because the resulting negative) - = 10000 * (1.5332 to 1.5282) =Now count the actual loss:Profit or loss = number of contracts (lots) * * points difference point value.- $ 150 = 1 * * 3 = -50. $ Fajsartna in this transaction 150. $ If you are dealing account for the traditional bris 1500You must understand now the main interest from the account sucking GR.Yes ... Reduce the risks.Valhassab sucking Rooms gives you a good profit if ratified your expectations, your loss but that has not ratified the expectations will remainLimited and will be able to continue and to make up for lost.The account in the ratified normal expectations you will be able to easily access the enormous profits, but if notFajsartk believe your expectations will be no doubt Heavy.So it is essential to the fullest extent that the actual Atbdo trading the currency market account normal .. But shouldRooms start sucking the account first, so has the experience and skill and adequate to assure you that the process results inAccount the safety of Rooms sucking your style and sincerity of your expectations ..Then - only then - you can proceed to a normal trading account.In the following table you will see the main difference between the normal account and the account sucking GR for most brokerage firmsThough the difference may vary from company to company.Standard Account Mini AccountThe lot size 100,000 units of base currency of the 10,000 unitsCurrency basis$ $ 50 margin of the user who is 500His opponent on each lot$ 1 $ the value of one point for 10 euros$ 1 $ the value of one point of the pound sterling 108. $ 80 USD value of any one point to Lin 8Cent65. $ 65 USD value of any single point of 6.5 Swiss francsCentImportant NoteStarting in 2004, the proportion of double the 100 U.S. brokerage firmsAny weakness of 100:1, and not 200 times as it was before and that based on the new regulationsOf the U.S. government for the NFA National Futures AssociationWhich means that the margin of the user who will be deducted for each lot in the account is a normal$ 1000 and for each lot in the mini account $ 100This applies only Alycherkat American mediation only