FOREX: TRADING EXAMPLE # 1

Information about a repeated crisis situation in Europe appeared on September 201. It was  already possible then to predict that the Euro exchange rate would drop soon.

1. Opening the position

 for $138,000 open a trade of 1 lot* (100,000 EUR) with a leverage of  1:10 and EUR/USD exchange rate of 1.3800

1. Closing the position

a month later, the position is  being closed with an exchange rate of 1.3108. the rate difference is 692 points in your favor (1.3800 - 1.3108) 

1. The Profit = $6,920

692 points X 1 (lot) X 10 (leverage)

*WHAT IS A LOT

A lot is the standard transaction in the forex market, which equals 100,000 units of the base currency.

 - mini lot = 10,000 units
- micro lot = 1,000 units