FX trading example
USD/JPY Currency Pair
USD/JPY is trading at (sell/buy) 109.47/109.50. You think that
the Dollar is going to fall against the Yen over the next few
days.
You sell the pair at 109.47.
Opening trade:
| Sell price (USD): |
109.47 |
| Unit size |
10,000 |
| Number of lots |
10 |
| Trade size (USD) |
100,000.00 |
| Margin requirement @ 100:1 leverage (USD) |
1,000.00 |
| Commission |
n/a |
| Total outlay (USD) |
1,000.00 |
After 2 days the Dollar price has changed by 100 pips and you
decide to close your position.
Closing trade (profit):
| Opening price (US$) |
109.47 |
| Closing price (US$) |
108.47 |
| P/L in pips |
100 |
| Gross profit / loss (US$) |
921.91 |
Closing trade (loss):
| Opening price (US$) |
109.47 |
| Closing price (US$) |
110.47 |
| P/L in pips |
(100) |
| Gross profit / loss (US$) |
(905.22) |
Net profit / loss would include any costs incurred for overnight
financing.
Forex and CFD trading carry a substantial risk of loss and are
not suitable for all investors. Please refer to our Risk Warning policy (PDF) for more
information.