Profit & Loss

We traded for profit, and profit by Unknown:Is that you buy at one price and sell at a higher price in the market upward.Or to sell at one price and buys at a lower price in the market downward.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 guess, and this Sidaok sell at a lower price because of the purchase price and thus will suffer the loss.This happens in any of the areas of trade anyway ...Of course, is important for you to know how to count and as a 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 is equal to the values ​​mentioned in the previous page.Example 1Suppose you bought 1 lot of Fairy at GBP / USD = 1.4926Then sold it at a price GBP / USD = 1.5085How 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
            = (1.5085 - 1.4926) * 10000 = 159We sold any difference of 159 points profitNow 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 pound = $ 10We have made a profit = $ 1,590
 Example 2Let's say you bought 2 Lotte euros at EUR / USD = .9762And sell price of EUR / USD = .9793Vahsb how much profit or loss?Answer:First calculate the difference in points of the equation for pound and the euro.Difference points = (sale price - purchase price) * 10 000
           = (9793. --9,762.) * 10000 = 31That is, we sold 31 points profit.Now count how many actually wonProfit or loss = number of contracts (Lott) * * the value of the point spread point.
                  = 2 * 31 * 10 = 620 $ on the basis of the value of one point for the Euro = $ 10
 We won in this deal, $ 620Example 3Suppose you bought a lot of 3 yen price of USD / JPY = 123.08And sell price of USD / JPY = 123.62Vahsb profit or lossAnswer:First calculate the difference in points of the equation for Palin.Difference points = ((sale price - purchase price) * 100) * -1
            = (123.62 - 123.08) * 100) * -1 = -54 points lossThat's because we bought the yen at one price and we sold at a lower price Wallen currency indirectly.Now we calculate the actual lossProfit or loss = number of contracts (Lott) * * the value of the point spread point.
                  = 3 * - 54 * 8 = $ --1,296 on the basis that the price of one point to Lin = $ 8
 We have lost in this deal in 1296 dollars.Example 4Suppose you sold Lot 4 of the franc price of USD / CHF = 1.4356Then purchased at a price USD / CHF = 1.4500Vahsb profit or lossAnswer:First calculate the points of difference equation francsDifference points = ((sale price - purchase price) * 10000) * -1
            = ((1.4356 1.4500 -) * 10000) * -1 = 144 points profitThis is because we sold the franc at a higher price than the purchase price Vafrenk currency indirectly.Now calculate the actual profitProfit or loss = number of contracts (Lott) * * the value of the point spread point.
                  = 4 * 144 * 6 = $ 3,456We won from selling us for 4 Lute Alfrenk then our purchase price less the amount of his $ 3,456And now you can see profit Owalkhosarp any deal as long as you learn the point value of each currency and the size of the contract Sttajer tags, the information will get through the brokerage firm, 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 of the most common brokerage firms in the currency market today.