If you trade forex on a good platform, you would not need to be calculating your profits and losses with few cents and dollars, the platform is designed to automatically calculate it for you.
All you need to do is look into your account and see what's there, and if it is losses, sorry. But we expect that you will take advantage of certain forex resources to help you determine your ability and capacity to survive as a forex trader.
Calculating your profits and losses or knowing how it is calculated will enable you understand the general principles of its calculation. For a proper understanding of how this is calculated, some examples will be given so that you can have a vivid illustrations of the principles. In this forex account, this calculation was made: The current bid/ask quote for the EUR/USD is 1.2200/1.2203. This means that you can purchase 1 euro for 1.2203 dollars, and you can see 1 euro for 1.2200 dollars.
So in the case where you go long on this currency pair, that is you buy this pair, you will need to pay $122,030. This is because the size of a lot of the EUR/USD is 100,000 units. So if your anticipation and speculation is right, and your current price is now at 1.3000/13003, you have made a gain of about 800 pips. This means that the price went up with 700 points.
Now selling this currency pair will be at your bid price which is usually the lower price. Now you have to sell the 100,000 units at about $130,000.
Subtracting your initial buy price of $122,030 ($130,000 - $122,030), you get a profit of about $797. This profit is not bad for a one day trading, and with consistent planning and correct speculation, you can earn much more than that. You also have to be aware that the losses invloved in forex is very great, as you can lose all your deposit, so getting the correct planning strategy is the key.
Education first, then trading next.
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