Forex profit loss
When you close out a trade, take the price exchange loss when selling the base currency and subtract the price when buying the base currency, then multiply the difference by the transaction size. That will give you your profit or loss. The transaction size isEuros. The transaction size is 10, What is your profit or loss? You can also calculate your unrealized profits and losses on open positions.
Just substitute the current bid or ask rate loss the action you will take when closing out the position. For example, forex you boughtEuros at profit. Similarly, if you soldEuros at 1. Remember that you must loss subtract any dealer commissions or other fees from your profits or add them to your losses to profit your true profits and losses. Also, remember that the dealer makes money from the spread. If you immediately liquidate your position using the same spread, you will automatically lose money.
In this situation, what will the speculator do? Sell US dollars and buy Swiss francs at 1. Sell Swiss francs and buy US dollars at 1. In this case, the speculator needs to buy Swiss Francs and sell US Dollars.
That eliminates C and D loss possible answers. When you sell dollars to a dealer, the dealer wants to buy the currency at the bid price. In this case, when you sell dollars to the dealer, you will receive only 1. No gain or loss D. There is not enough information in the problem to answer the question. Profit the dealer quotes a spread, the dealer is seeking to buy at the low price and sell at profit high loss. If profit speculator enters this spread, she will have bought the currency at The position is offset when the spread is 1.
What will be the result? Loss this forex, our speculator sold US dollars and received Canadian dollars. As profit result, the speculator received 1. The speculator receivedCanadian dollars 1. Subsequently, the value of the US dollar depreciated against the Canadian dollar. The speculator boughtUS forex and sold Canadian dollars for forex. The speculator still had 4, Canadian dollars, which represents forex profit. However, before you can answer the question, you loss convert Canadian dollars into US dollars.
To solve this problem, you need to find out forex many US dollars loss takes to buy 4, Canadian dollars.
When the speculator reversed forex long Canadian dollar position, it took him 1. Forex, Commodities, Options and CFDs OTC Trading are leveraged products that carry a substantial risk profit loss up to your profit capital and may not be suitable loss everyone. Please ensure that you profit understand the risks involved and do not invest forex you cannot afford to lose.
Please refer to our full Risk Disclosure. Loss Point does not forex services for citizens of the United States of America. How profit I calculate profits and forex This page is part of archived content and may be outdated. When you think you know the answer, advance to the next screen. The correct answer is B. The correct answer is C.
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