The Calculation of profit and loss
1. For currency direct or USD is located behind
Example: EUR / USD, EUR / USD, GBP / USD, NZD / USD
Formula: profit / loss = (position close - open positions) x Quantity
2. For indirect currency or USD is located in front
Example: USD / JPY, USD / CAD, USD / CHF
Formula: profit / loss =
(position close - open position) x Quantity
Position close
3. For the cross currency rates that are not common or comparable with the USD
Example: USD / JPY, CAD / JPY, CHF / JPY, GBP / JPY, EUR / AUD, EUR / GBP, EUR / JPY, GBP / AUD, GBP / CHF, GBP / JPY, NZD / JPY.
• If the counter currency direct type, for example: EUR / AUD, EUR.GBP, GBP / AUD
Formula: profit / loss = (position of close-open position) x Quantity
• If the manifold indirect currency counter, currency counter, which was behind the JPY and CHF are indirect, for example: EUR / JPY, CAD / JPY, CHF / JPY, GBP / JPY, EUR / JPY, GBP / CHF, GBP / JPY, NZD / JPY.
Formula: profit / loss =
( Position Close - Position open ) x Quantity
Position close
Glossary of terms in the online FOREX trading
• Lot is a unit of the contract on each transaction, 10,000 units in FOREX commonly called a lot, so all transactions are calculated based on units of this lot. 1 lot, 2 lots, 3 lots, and so forth, meaning 20,000 2 lots of currency, depending on the currency purchased / sold.
• Quantity contract size (value of the contract) that the actual number traded in the market, Contract size is usually determined by lot, namely: 1 lot = unit value of the contract: 10,000 or 100,000.
• Pips is a unit commonly used in naming the value of an exchange or so-called "points"
• Spread is the difference between selling price and buy because for every two pairs show the price at which the purchase price (bid) and selling price (offer)
• Floating is when the price position we have not been in close (in liquid to be realized) and still in a position to move in the market expands.
• Balance the amount of money that has been realized or that have been in close (not calculated by the position of floating profit / loss if any)
• Equity is the amount of money you are after is calculated with floating profit or loss
• Margin of total use margin (collateral) you in accordance with the total number of orders that are running (open position)
• Free margin is the margin the rest of you can use to order, if you still have a floating position for withdrawal, then you are biased pick from the remaining money in the free margin
• Margin is a percentage level of equity versus your margin (margin levels are also useful for determining the margin call (total loss) in your endurance, if this level of margin drop below 5% then you will be a total loss or run out of money
• Buy can also be paired with a bid or long and fitted with the offer or sell short, or ask
• Buy stop buy order above the reserve price is now underway, with expectations if the market price moves up a little market price points that our message is then at that point will be installed automatically buy, with the hope that the graph can be moved up again in order to gain profit.
• Sell stop order sell below the reserve price is now underway, with expectations if the market price moves down a little market price points that our message, then at that point will be installed automatically sell with the hope that the graph can move down to profit
• Buy limit order buy order that is below the price now underway, with expectations if the market price moves down a little market price points that our message is then at point will be installed automatically buy in the hope that after that the graph can be moved up in order to profit.
• Sell limit sell order above the reserve price is now underway, with expectations if the market price moves up a little market price points that our message is then at point will be automatically installed after the sell with the expectation that it can move down the chart in order to profit
• Fast market / hectic / volatile market is a very significant market movements and can cause prices to move very fast and the price jumps occur, this is usually caused by an important news or anything else that can cause a very high movement in the market, and when you order hectic when slippage is likely to occur (price missed) or delay, REQUOTE (request repeatedly re-order price for adjustments) and the buying and selling price spreads that can widen a while, because they have to adjust with the market price is moving fast.
• Slippage is a condition in which order we raced as far as some of the points from the point that we order, this happens because the price jumps due to market volatility or a hectic / fast market, it usually happens for trapping techniques (stop buy, sell stop) is too close when an important news event (big new)
• whipsawed is the currency movements are only cheating or not show the actual trend.
• Take profit (TP) is to target your profits
• Stop loss (SL) is to limit your losses or cut losses, cut losses is the act of closing the position being in a loss to avoid losses more
• Switching is if we close a position (cut loss) that is being lost and contrary to our predictions and then open a new position following the position of the price moves against the position of a second profit expectation is greater than the first position that has been cut loss by opening a second position which contrary to the first position when the prediction gain exceeds the loss of the first position to be closed, if it turns out the price changes according to the first prediction, then you will suffer a loss twice, the first position and second position.
• Averaging is opening another new position in the direction of the old position even though the current price moves in the opposite or same direction as the belief that prices will move in accordance with our predictions, averaging taken when we believe that the price changes that occur will be changed again according to the original predictions.
• Hedging (protection of value) means that we are opening two opposite positions so that even if the price goes up or down the value of the floating remains the same thus protecting the position held, hedging, or locking the term is taken because we use this technique when we locked position so that the value gains and losses are always move hand in hand.
• Cross hedging means we opened two opposing positions on different currency pairs but still allied, allied intent here is the trend of movement of the two currency pairs tend to be the same as: GBP/USD with EUR/USD, AUD/USD, NZD/USD.
1. For currency direct or USD is located behind
Example: EUR / USD, EUR / USD, GBP / USD, NZD / USD
Formula: profit / loss = (position close - open positions) x Quantity
2. For indirect currency or USD is located in front
Example: USD / JPY, USD / CAD, USD / CHF
Formula: profit / loss =
(position close - open position) x Quantity
Position close
3. For the cross currency rates that are not common or comparable with the USD
Example: USD / JPY, CAD / JPY, CHF / JPY, GBP / JPY, EUR / AUD, EUR / GBP, EUR / JPY, GBP / AUD, GBP / CHF, GBP / JPY, NZD / JPY.
• If the counter currency direct type, for example: EUR / AUD, EUR.GBP, GBP / AUD
Formula: profit / loss = (position of close-open position) x Quantity
• If the manifold indirect currency counter, currency counter, which was behind the JPY and CHF are indirect, for example: EUR / JPY, CAD / JPY, CHF / JPY, GBP / JPY, EUR / JPY, GBP / CHF, GBP / JPY, NZD / JPY.
Formula: profit / loss =
( Position Close - Position open ) x Quantity
Position close
Glossary of terms in the online FOREX trading
• Lot is a unit of the contract on each transaction, 10,000 units in FOREX commonly called a lot, so all transactions are calculated based on units of this lot. 1 lot, 2 lots, 3 lots, and so forth, meaning 20,000 2 lots of currency, depending on the currency purchased / sold.
• Quantity contract size (value of the contract) that the actual number traded in the market, Contract size is usually determined by lot, namely: 1 lot = unit value of the contract: 10,000 or 100,000.
• Pips is a unit commonly used in naming the value of an exchange or so-called "points"
• Spread is the difference between selling price and buy because for every two pairs show the price at which the purchase price (bid) and selling price (offer)
• Floating is when the price position we have not been in close (in liquid to be realized) and still in a position to move in the market expands.
• Balance the amount of money that has been realized or that have been in close (not calculated by the position of floating profit / loss if any)
• Equity is the amount of money you are after is calculated with floating profit or loss
• Margin of total use margin (collateral) you in accordance with the total number of orders that are running (open position)
• Free margin is the margin the rest of you can use to order, if you still have a floating position for withdrawal, then you are biased pick from the remaining money in the free margin
• Margin is a percentage level of equity versus your margin (margin levels are also useful for determining the margin call (total loss) in your endurance, if this level of margin drop below 5% then you will be a total loss or run out of money
• Buy can also be paired with a bid or long and fitted with the offer or sell short, or ask
• Buy stop buy order above the reserve price is now underway, with expectations if the market price moves up a little market price points that our message is then at that point will be installed automatically buy, with the hope that the graph can be moved up again in order to gain profit.
• Sell stop order sell below the reserve price is now underway, with expectations if the market price moves down a little market price points that our message, then at that point will be installed automatically sell with the hope that the graph can move down to profit
• Buy limit order buy order that is below the price now underway, with expectations if the market price moves down a little market price points that our message is then at point will be installed automatically buy in the hope that after that the graph can be moved up in order to profit.
• Sell limit sell order above the reserve price is now underway, with expectations if the market price moves up a little market price points that our message is then at point will be automatically installed after the sell with the expectation that it can move down the chart in order to profit
• Fast market / hectic / volatile market is a very significant market movements and can cause prices to move very fast and the price jumps occur, this is usually caused by an important news or anything else that can cause a very high movement in the market, and when you order hectic when slippage is likely to occur (price missed) or delay, REQUOTE (request repeatedly re-order price for adjustments) and the buying and selling price spreads that can widen a while, because they have to adjust with the market price is moving fast.
• Slippage is a condition in which order we raced as far as some of the points from the point that we order, this happens because the price jumps due to market volatility or a hectic / fast market, it usually happens for trapping techniques (stop buy, sell stop) is too close when an important news event (big new)
• whipsawed is the currency movements are only cheating or not show the actual trend.
• Take profit (TP) is to target your profits
• Stop loss (SL) is to limit your losses or cut losses, cut losses is the act of closing the position being in a loss to avoid losses more
• Switching is if we close a position (cut loss) that is being lost and contrary to our predictions and then open a new position following the position of the price moves against the position of a second profit expectation is greater than the first position that has been cut loss by opening a second position which contrary to the first position when the prediction gain exceeds the loss of the first position to be closed, if it turns out the price changes according to the first prediction, then you will suffer a loss twice, the first position and second position.
• Averaging is opening another new position in the direction of the old position even though the current price moves in the opposite or same direction as the belief that prices will move in accordance with our predictions, averaging taken when we believe that the price changes that occur will be changed again according to the original predictions.
• Hedging (protection of value) means that we are opening two opposite positions so that even if the price goes up or down the value of the floating remains the same thus protecting the position held, hedging, or locking the term is taken because we use this technique when we locked position so that the value gains and losses are always move hand in hand.
• Cross hedging means we opened two opposing positions on different currency pairs but still allied, allied intent here is the trend of movement of the two currency pairs tend to be the same as: GBP/USD with EUR/USD, AUD/USD, NZD/USD.
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