Profit & Loss

We traded for profit, and by profit known:
It can buy at one price and sell at a higher price in the market bullish.
Or to sell at the price and buy at a lower price in the market bearish.
In both cases must be the selling price is higher than the purchase price.
But the winds do not blow ship!!
It expects that the price of the currency will rise whereupon purchase, but you may find that the price of the currency fell Contrary to your expectations, and this Sidaok because sells at a lower price than the purchase price and thus will suffer from the loss.
This happens in any field of trade anyway ...
It is important to you, of course, that you know how to calculate a result of a deal you've made on a currency .. Whether it made a profit or loss.
In order to learn the profit or loss on any currency use the following equation:
Profit or Loss = number of contracts (Lute) * difference in points * point value.
If the result is positive though profit was a negative output loss.
Take the examples assuming we are dealing with a company has a point value for each currency equal to the values ​​that we have mentioned in the previous page.
Example 1

Then sold it at GBP / USD = 1.5085
How much profit or loss made by?
The answer:
I daresay first points of difference equation for the pound and the euro.
Spread = (sale price - purchase) * 10000
            = (1.5085 - 1.4926) * 10000 = 159
We sold 159 points profit margin
Now calculate actual profit:
Profit or Loss = number of contracts (Lute) * difference in points * point value.
                  = 1 * 159 * 10 = 1590 $ on the basis that one point worth LE = $ 10
We have made a profit = 1590 $
 Example 2

And sold it at EUR / USD = .9793
Vahsb how much profit or loss?
The answer:
I daresay first points of difference equation for the pound and the euro.
Spread = (sale price - purchase) * 10000
           = (9793. - 9762.) * 10000 = 31
We sold a difference of 31 points profit.
Now calculate how actually won
Profit or Loss = number of contracts (Lute) * difference in points * point value.
                  = 2 * 31 * 10 = 620 $ on the basis of the value of one point for the euro = $ 10
 We won in this deal is $ 620
Example 3

And sold it at USD / JPY = 123.62
Vahsb profit or loss
The answer:
I daresay first points of difference equation for Palin.
Spread = ((sale price - purchase price) * 100) * -1
            = (123.62 - 123.08) * 100) * -1 = -54 points loss
That's because we bought the yen rate and we sold at a lower price Valin currency indirectly.
Now calculate the actual loss
Profit or Loss = number of contracts (Lute) * difference in points * point value.
                  = 3 * - 54 * 8 = - 1296 $ on the basis that the price point per Lin = $ 8
 We have lost in this transaction 1296 dollars.
Example 4

Then I bought at USD / CHF = 1.4500
Vahsb profit or loss
The answer:
I daresay first points of difference equation francs
Spread = ((sale price - purchase price) * 10000) * -1
            = ((1.4356 - 1.4500) * 10000) * -1 = 144 points profit
And so we sold the franc at a higher price than purchasing currency Vafrenk not directly.
Now calculate the effective profit
Profit or Loss = number of contracts (Lute) * difference in points * point value.
                  = 4 * 144 * 6 = 3456 $
We won from selling us for 4 Lott of Alfrenk then our purchase him at a lower price amount 3456 $
And now you can see profit Oalkhsarh any deal as long as you learn point value of each currency and the volume of the contract Sttajer it, which is information that may be obtained from the brokerage firm, which will choose to work with them, though the size of the points mentioned in the previous examples and the size of the contracts is the size most commonly between brokerage firms in the currency market.