Profit and loss in trading currenciesProfit & Loss
We traded for profit, and profit by Anonymous:
It can buy at one price and sell at a higher price in the market upward.
Or to sell at the price and buy at a lower price on the market bearish.
In both cases, must be the highest selling price of the purchase price.
But may the winds do not blow ships ..!!
May expect that the price of the currency will rise, whereupon bought, but you may find that the price of the currency fell to reverse your prospect, and this Sidaok sell at a lower price because of the purchase price and therefore will suffer the loss.
This happens in any field of trade in any case ...
Of course, is important for you to know how to calculate a result of a deal you've made on a currency .. Is it made a profit or loss.
In order to know the profit or loss in any currency use the following equation:
Profit or loss= Number of contracts (Lott) * points * difference value point.
If the result is positive even if a profit was a negative result was a loss.
Take the examples assuming we are dealing with a company has a point value for each currency equal to the values that we have mentioned in previous page.
Example1
Suppose you bought 1 lot of the pound price of GBP / USD = 1.4926
Then sold at the price of 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 in points= (Sale price - purchase price) * 10000
= (1.5085 - 1.4926) * 10000 = 159Which we sold a difference of 159 points profitNow we calculate the actual profit:
Profit or loss= Number of contracts (Lott) * points * difference value point.
= 1 * 159 * 10 = $ 1,590On the basis that the value of one point of the pound = $ 10
We have made a profit = $ 1590
Example 2
Suppose you bought 2 lots euros at EUR / USD = .9762
And sold at the price of EUR / USD = .9793
Vahsb how much profit or loss?Answer:
First, calculate the difference in points of the equation for pound and the euro.
Difference in points= (Sale price - purchase price) * 10000
= (9793. --9 762.) * 10000 = 31Which we sold a difference of 31 points profit.
Now calculate how many actually wonProfit or loss= Number of contracts (Lott) * points * difference value point.
= 2 * 31 * 10 = $ 620On the basis of the value of one point for the euro = $ 10
We won in this deal $ 620Example3
Suppose you bought 3 lots of the yen price of USD / JPY = 123.08
And sold at the price of USD / JPY = 123.62
Vahsb your profit or lossAnswer:
First, calculate the difference in points of the equation for Palin.
Difference in points= ((Sale price - purchase price) * 100) * -1
= (123.62 - 123.08) * 100) * -1 = -54Point lossThis is because we bought the yen rate and we sold at a lower price Fallen currency indirectly.
Now we calculate the actual lossProfit or loss= Number of contracts (Lott) * points * difference value point.
= 3 * - 54 * 8 = $ --1,296On the basis that the price of one point of the yen = $ 8 We have lost the deal in 1296 dollars.
Example4
Suppose you sold Lot 4 of the franc price of USD / CHF = 1.4356
Then I bought at the price of USD / CHF = 1.4500
Vahsb your profit or lossAnswer:
First, calculate the difference in points of the equation for francs
Difference in points= ((Sale price - purchase price) * 10000) * -1
= ((1.4356 1.4500 -) * 10000) * -1 = 144Point gainThat's because we sold the franc at a higher price than the purchase price Vafrenk currency indirectly.
Now we calculate the actual profit
Profit or loss= Number of contracts (Lott) * points * difference value point.
= 4 * 144 * 6 = $ 3,456We won from selling us for 4 lot of Alfrenk then Hrana him at a lower amount of $ 3456
And now you can see profit Oalkhsarh any deal as long as you learn the point value of each currency and the size of the contract Sttajer do, information that may be obtained from the brokerage company, which will choose to work with them, though the size of the points mentioned in the previous examples and the size of the contracts is the size most commonly between brokerage firms in the currency market today.
We traded for profit, and profit by Anonymous:
It can buy at one price and sell at a higher price in the market upward.
Or to sell at the price and buy at a lower price on the market bearish.
In both cases, must be the highest selling price of the purchase price.
But may the winds do not blow ships ..!!
May expect that the price of the currency will rise, whereupon bought, but you may find that the price of the currency fell to reverse your prospect, and this Sidaok sell at a lower price because of the purchase price and therefore will suffer the loss.
This happens in any field of trade in any case ...
Of course, is important for you to know how to calculate a result of a deal you've made on a currency .. Is it made a profit or loss.
In order to know the profit or loss in any currency use the following equation:
Profit or loss= Number of contracts (Lott) * points * difference value point.
If the result is positive even if a profit was a negative result was a loss.
Take the examples assuming we are dealing with a company has a point value for each currency equal to the values that we have mentioned in previous page.
Example1
Suppose you bought 1 lot of the pound price of GBP / USD = 1.4926
Then sold at the price of 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 in points= (Sale price - purchase price) * 10000
= (1.5085 - 1.4926) * 10000 = 159Which we sold a difference of 159 points profitNow we calculate the actual profit:
Profit or loss= Number of contracts (Lott) * points * difference value point.
= 1 * 159 * 10 = $ 1,590On the basis that the value of one point of the pound = $ 10
We have made a profit = $ 1590
Example 2
Suppose you bought 2 lots euros at EUR / USD = .9762
And sold at the price of EUR / USD = .9793
Vahsb how much profit or loss?Answer:
First, calculate the difference in points of the equation for pound and the euro.
Difference in points= (Sale price - purchase price) * 10000
= (9793. --9 762.) * 10000 = 31Which we sold a difference of 31 points profit.
Now calculate how many actually wonProfit or loss= Number of contracts (Lott) * points * difference value point.
= 2 * 31 * 10 = $ 620On the basis of the value of one point for the euro = $ 10
We won in this deal $ 620Example3
Suppose you bought 3 lots of the yen price of USD / JPY = 123.08
And sold at the price of USD / JPY = 123.62
Vahsb your profit or lossAnswer:
First, calculate the difference in points of the equation for Palin.
Difference in points= ((Sale price - purchase price) * 100) * -1
= (123.62 - 123.08) * 100) * -1 = -54Point lossThis is because we bought the yen rate and we sold at a lower price Fallen currency indirectly.
Now we calculate the actual lossProfit or loss= Number of contracts (Lott) * points * difference value point.
= 3 * - 54 * 8 = $ --1,296On the basis that the price of one point of the yen = $ 8 We have lost the deal in 1296 dollars.
Example4
Suppose you sold Lot 4 of the franc price of USD / CHF = 1.4356
Then I bought at the price of USD / CHF = 1.4500
Vahsb your profit or lossAnswer:
First, calculate the difference in points of the equation for francs
Difference in points= ((Sale price - purchase price) * 10000) * -1
= ((1.4356 1.4500 -) * 10000) * -1 = 144Point gainThat's because we sold the franc at a higher price than the purchase price Vafrenk currency indirectly.
Now we calculate the actual profit
Profit or loss= Number of contracts (Lott) * points * difference value point.
= 4 * 144 * 6 = $ 3,456We won from selling us for 4 lot of Alfrenk then Hrana him at a lower amount of $ 3456
And now you can see profit Oalkhsarh any deal as long as you learn the point value of each currency and the size of the contract Sttajer do, information that may be obtained from the brokerage company, which will choose to work with them, though the size of the points mentioned in the previous examples and the size of the contracts is the size most commonly between brokerage firms in the currency market today.
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