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| Calculating Profit & Loss |
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| Calculating Profit and Loss |
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| Our online trading platform will automatically calculate the P&L of your open positions, but it is useful to understand how this calculation is made to understand your profit and loss potential on each trade. |
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| Trading on margin, means you aren't required to put up the full value of the open position, you just need to deposit around 1% as margin. |
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| Standard contract ( 1 lot ) needs $1000 margin. |
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| 0.1 Standard contract ( 0.1 lot ) needs $100 margin. |
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| 0.01 standard contract ( 0.01 lot ) needs $10 margin. |
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| For example: |
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| Let's say that you sell EUR/USD when trading at 1.36440/1.36490. |
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| You sell 100,000 Euros (means 1 lots) and receive $136,440 (100,000 x 1.36440), your initial margin deposit would be $1,000 for this trade ($1000 per lot). |
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| When the Euro weakens to 1.36030/1.36080. To take profit you buy 100,000 Euros at 1.36080 and pay $136,080. |
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| To calculate your profit: |
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| You sold 100,000 Euros at 1.36440, receiving $136,440 . |
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| You bought 100,000 Euros at 1.36080, paying $136,080. |
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| Total profit = US $360. |
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| It means that you spent $1000 and make $360 profit. The profit rate is 36%, if you didn’t trade with margin, you spent 100,000EUR to sell, the profit rate would be less than 0.3% |
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| Trading on leverage increases your potential for profit, but also increases your risks. |
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Khmer Unincode Installer
