The profit and loss account

When you enter a deal, there is the possibility of the two, either the price moves in the direction of your trade attaining you profits and either moves opposite your transaction recording losses, calculated gains and losses through the points, and different point value in each pair from each other and the program trading these calculations automatically and so by the following equation:

The point value = contract size x (0.0001÷exchange rate)

Example (1):

- When the dollar is the base currency:

If the pair exchange rate dollar CHF = 1.2970 and you want to calculate the point value of the standard contract (100,000).

Point Value = 100,000 × (0.0001 ÷ 1.2970) = 7.7 dollars

Example (2):

- When the dollar is the currency of the interview:

If the exchange rate (GBP USD) = 1.6900 and you want to calculate the point value of the standard contract (100000).

Point value = 100000 × (0.0001 ÷ 1.6900) = 5.91 pounds.

Then we convert the value of the pound sterling to the point value of the dollar as follows:

(Currency basis point value x exchange rate pair)

5.91 × 1.6900 = 10 dollars.

After calculating the value of the point can determine the size of the profit and loss by beating in the number of points that is driven by the pair, if the point value of $ 10, for example, and the movement of the pair in the direction of your trade 100 points, so the overall result is the profit (10 × 100) = 1000 dollars.

Notes:

Always observed when the dollar is the currency of the interview, be $ 10 point in the standard contract, and $ 1 mini contract, and $ 0.10 in the micro decade.

Each carefully calculated 0.0001 couples except JPY crosses they carefully calculated 0.01 because all couples exchange rate consists of four decimal numbers, except the yen, which consists of only two decimal places.

Thus, according to the number of points that the pair Athrkha be your profit or loss.