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Does "profit=selling price - buying price" hold true in forex trading?


Does "profit=selling price - buying price" hold true in forex trading?

Profit(loss) = (selling price-buying price-expenses)

Also factor in any annual/monthly membership fees

Need to factor in expense of the trade.

Oversimplified, but mostly yes.

there's something you lose most, though.. and that's time

yea, +broker commission if any

Profit = [Selling price - buying price] x [qty of Currency]

For a $10,000 trade, 0.0001 = $1
For a $100,000 trade, 0.0001 = $10

So if you had bought $10,000 worth of Eur/USD @ 1.4600 and sell at 1.4700 : you would have made $100.

If you had bought $100,000 worth , you would have made $1,000


Hope this helps : this video may make it clearer.
http://www.geocities.com/lcming/ForexFor...
http://www.geocities.com/lcming/Forexboo...

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