For ease of use, more trading platforms automatically calculate online P * L about vacancies a few traders. However, it would be useful to know the way this calculation is maded:
To show an FX trade, you have to consider the next two cases.
Let's say the current offer / ask for 1€ - 1$ is 1.4616 / 19, means that you can buy 1€ for the price of 1.4619 or sell 1 euro for 1.4616$.
Now suppose that you decide that the € is devalueded compared to the $.Now, to start implement this strategy, you go and start buying Euros (simultaneously selling dollars), and then expect the exchange rate increases.
In that moment you make the trade: to buy 100,000 Euros you will be paying $ 146.190 (100,000 x 1.4619). Remember, in the range of 2% (50: 1 leverage), your initial margin deposit would be approximately $ 2,923 for this trade.
As you expected, the For ease of use, more trading platforms automatically calculate online P * L about vacancies a few traders. However, it is useful to know how this calculation is calculated:
To demonstrate an FX trade, consider the next two cases.
Let's say the current offer / ask for 1€ - 1$ is 1.4616 / 19, means that you can buy 1€ for the price of 1.4619 or sell 1 euro for 1.4616. PROFIT
Now suppose that you decide that the € is devalueded compared to the $.Now, to start implement this strategy, you go and start buying Euros (simultaneously selling dollars), and then expect the exchange rate increases.
In that moment you make the trade: to buy 100,000 Euros you will be paying $ 146.190 (100,000 x 1.4619). Remember, in the range of 2% (50: 1 leverage), your initial margin deposit would be approximately $ 2,923 for this trade.
As you expected, the € strengthens to 1.4623 / 26. Now, to gain your profits, you sell 100,000 € at the rate in force of 1.4623, and receive $ 146.230. Profit
You bought 100 kilobyte 1.4619 Euros, paying $ 146.190. Then you sold 100 kilobyte 1.4623 Euros, receiving $ 146.230. This is a difference of 4 pips, or in terms of dollar ($ 146.190 - $ 146.230 40).
Total gain US $ 40.
Now in the example, say that again buy EUR / USD at 1.4616 changing / 19. You buy 100,000 Euros you pay $ 146.190 (100,000 x 1.4619).
However, the Euro weakens to 1.4611 / 14. Now, to reduce your loses you sell 100,000 <span class="st">€</span> at 1.4611 and receive $ 146.110 PROFIT.
You bought 100 kilobyte 1.4619 Euros, paying $ 146.190. You sold at 1.4611 Euros 100 kilobyte, receiving $ 146.110. This is a difference of 8 pips or in dollar terms ($ 146.190 - $ 146.110 $ 80).
Total loss US $ 80.

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