How exactly the way I calculate profits and losses?

How exactly the way I calculate profits and losses? - So now you know how to calculate pip value, let's see how you mnghitung your profit or loss.

Let's buy US dollars and sell Swiss Francs.You kuotakan exchange rate is 1.4525 / 1.4530. because you buy your US dollar will trade them at 1.4530, the exchange rate was prepared by merchants for sale.So you buy 1 lot of $ 100,000 at 1.4530.A few hours later, the price moves to 1.4550 and you decide to close your trade.

The new quota for the USD / CHF is 1.4550 / 1.4555. Because you close your trade and you initially bought to enter the trade, you now sell in order to close the trade, so you have to take the price of 1.4550. prices and groomed traders to buy.

The difference between 1.4530 and 1.4550 is .0020 or 20 pips.By using our formula from before, we now have (.0001 / 1.4550) x $ 100,000 = $ 6.87 per pip x 20 pips = $ 137.40

Remember, when you enter or exit a trade, you are to be the subject of its spread in the quota bid / offer.When you buy a currency, you will use the offer price and when you sell, you will use the bid price.So when you buy a currency, you pay the spread as you enter the trade but not as you exit. And when you sell a currency, you are not paying its spread when you enter but pay when you exit.