Making profit on Forex market. Examples.
Example 1. GBP/USD
Let your deposit equal 3000 USD. Leverage 1:100 on Forex Market allows to operate the sum equal 300 000 units of base currency.
You expect increasing of US currency cost against general world currencies on Forex Market. And decide to sell GBP against USD on September, 22, 2005. At the same time you realize the risk of trading the maximum sum, and sell only 30 000 GBP against USD at 1.8000.
12 days later, on October, 3, 2005 you decide to close your short position and buy GBP at 1.7540.
Thus, your operation profit on Forex Market equal:
(1.8000-1.7540)*30 000 = $1380
Accordingly, the trading yield equal:
($1380/$3000)*100 = 46% of the initial deposit.
Example 2. USD/JPY
Let your deposit equal 2000 USD. Leverage 1:100 on Forex Market allows to operate the sum equal 200 000 units of base currency.
You expect decreasing of US currency cost against general world currencies on Forex Market. And decide to sell 50 000 USD against JPY at 111.10 on August, 31, 2005.
A week later you decide to close your short position USD/JPY and buy USD against JPY at 109.15.
Thus, the financial result of this trade on Forex Market equal:
(111.10-109.15)*50 000 = 97 500 JPY (or 97 500/109.15 = $893.26)
Accordingly, the trading yield equal:
($893.26/$2000)*100 = 44.7%
Evidently, that trader's main task is to forecast the trade of developments on currency market correctly. So if we had acted conversely in the above-listed operations, loss would be the result of trades.
Software PFGFX TRADER v.4
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