How to make a profit and lose money by speculating in foreign exchange?

For example: Euro US dollar current price is the former is the selling price, the latter is the ** price), the platform charges your spread is 4 points, you do it up, then deduct the spread, the exchange rate of the euro and the dollar must go above (excluding, because you go to that price you will not lose or earn, just zero, at least to earn) you will make a profit. If you go now, then you have earned 40 points!!

If you use 1 lot to make this order, then 40 points = 400 USD; If you are placing orders by hand, then the 40 points you earn = 40 US dollars.

On the contrary, if the euro and the dollar are falling, you are falling at the price, but ** is strong, and now you are going, then you are looking in the wrong direction, and you have lost 44 points!

Do you understand? If you don't understand it, you can add it.

There are two **s for currency pairs, one for bid and one for ask. Regardless of whether you buy or sell, the spread is included in the profit and loss. So just look at your profit and loss.

Profits and losses in foreign exchange speculation can not be simply regarded as a single win and loss, but to set a time by yourself, in this time the account funds are more than before, that is, win, vice versa. This is described in detail in the personal construction trading system, that is, by testing the profit of the trading system, you will know the profit and loss.

The calculation formula is: (closing price - opening price) *** contract closing price * number of lots = profit and loss.

For example, if a client with $5,000 is short USD JPY 2 lots, he is closing the position. How is his profit calculated? (U.S. dollars.)

First of all, consider the changes in foreign exchange rates. Investors make money from the fluctuation of the exchange rate, which can be said to be the main way to make profits from contract spot foreign exchange investment. The amount of profit or loss is calculated in points, the so-called points are actually the exchange rate, for example, 1 dollar to yen, the yen can be said to be 13025 points, when the yen falls, that is, **100 points, the yen at this price, each point represents the dollar.

The value of each point of each currency such as the Japanese yen, the euro, the British pound, the Swiss franc is different, and the value of the Japanese yen and the Swiss franc is different at different prices. In contract spot foreign exchange trading, the more points you earn, the more you make, the more you lose, and the less points you lose, the less you lose. Of course, the number of points earned and lost is directly proportional to the amount of profit and loss.

Secondly, it is necessary to consider the interest expense and income. If it is an investment, such as the end of the day of trading, or in.

In one or two days, you don't have to think about the interest expense and income, because.

The interest expense and income for one or two days are very small, and the impact on profit or loss is small. However, for medium- and long-term investors, the issue of interest is an important link that cannot be ignored. For example, if an investor sells pounds at a price, and a month later, the pound is still in this position, and if the interest is calculated at 8% for selling pounds, the monthly interest payment is as high as $750, which is also a lot of expenses.

Judging from the current investment situation of ordinary residents, many investors attach great importance to interest income and ignore the trend of foreign currency, so they like to buy high-interest foreign currency, and the result is a small loss. For example, when the British pound is **, the investor buys the pound, even if a contract earns $450 per month, but the pound is 500 points in a month, and he loses $5,000 in points, the interest income cannot make up for the loss caused by the pound sterling**. Therefore, investors should put the movement of the foreign exchange rate first, and the income or expense of interest second.

Finally, consider the expense of processing fees. Investors buy and sell contract foreign exchange through financial companies, therefore, investors have to calculate this part of the expenditure into the cost. The commission charged by the financial company is based on the number of contracts that the investor buys and sells, not the amount of profit or loss, so this is a fixed amount.

Example: Euro US dollar current price is the former is the selling price, the latter is the ** price), you do it up (that is, do slag), your opening price, that is, the closing price is, the platform has automatically closed the spread of 4 points, when the exchange rate to go above (the selling price to go, this price you do not lose or earn, just zero, at least the closing price to make a little profit) you will make a profit. If the closing price (selling price) is now at this point), then you have earned 45 points!

On the contrary, the current price of the euro and the US dollar is, and you make it fall (i.e., sell), and the opening price of your position at that time is, then the closing price is. It is the opposite of the opening price of the slag.

In the foreign exchange margin business, if you are long, that is, 20% of the profit, if you are short, you will lose 20%.

1. Foreign exchange trading: Through the exchange rate fluctuations between currencies, the act of buying low and selling high for arbitrage is called foreign exchange trading, which is what we usually call foreign exchange speculation.

2. "Point": In foreign exchange margin trading, the smallest unit is called "point".

For example, the EUR/USD currency pair fluctuates by 1 pip from to, and the USDJPY currency pair fluctuates by 1 pip from to.

For example, a 50-pip fluctuation is a 50-pip fluctuation to, for example, EURUSD.

3. "Pip value": In the case of 1 standard lot of trading, the fluctuation of 1 pip (regardless of the leverage multiple of the trading platform) is the fluctuation of 10 US dollars, so 50 pips in the case of 1 standard lot is the fluctuation of 500 US dollars.

4. "Foreign exchange profit and loss calculation": because foreign exchange is a two-way trading mechanism, foreign exchange trading can be bought up, but also can be bought down, so only when we see and do the right direction we are profitable, otherwise it is a loss;

For example, if we choose to go long EURUSD, we make a profit of 50 pips from EURUSD, 1 standard lot is 500 USD, and vice versa is a loss of 50 pips.

In the forex market, the exchange rate of one country with another country's currency is in pairs. The base currency comes first, the target currency comes last, and the middle is separated by " ", indicating how much of the target currency can be exchanged for one unit of the base currency.

The exchange rate is expressed by 5 digits, with the decimal point before the "yuan" and the last decimal place "point". Usually the change in the exchange rate refers to the change in the last digit. Such as:

The current ** price of GBP USD is 1?9876, which refers to the fact that 1 pound is now 1 in US dollars$9,876; If it goes up one point after buying, it is 1?

9877, if it falls by one point, it is 1?9875。

Due to the different types of currencies, the method of pricing the exchange rate is also different. There are generally two pricing methods for exchange rates: there are two kinds of foreign exchange.

One is in the bank, but the charge is more, and the other is the foreign exchange margin, foreign exchange ** is a bilateral transaction, 24-hour trading in the international market, there is a lot of investment and profit space, compared to the risk of ****, and the profit is objective. And there is also leveraged trading. If you have any needs, you can contact me q1542361747

To calculate the profit and loss is to calculate the value of the spread between ** and sell, for example, when ** euro is sold, the spread is 10 pips. To calculate the value of each point, you can first separate direct and indirect money. The characteristic of direct money is that no matter how high or low the exchange rate fluctuates, it does not affect the value of each point.

For example, a lot of 100,000 euros is worth 10 US dollars for each point of exchange rate fluctuations. The procedure is as follows:

Minimum unit of change Exchange rate Contract Units Lot size Value per pip ,000 1 EUR

If we take the EUR exchange rate, we know that each pip is worth 10 US dollars. What if the euro rises to every pip? ,000＊1＝

If we look at the exchange rate, we know that it is equal to 10 US dollars. In short, just one hundred thousand yuan, all direct currency, each point is worth 10 dollars.

The value of each pip of indirect currency will change in response to exchange rate fluctuations. The calculation procedure is similar to that of direct currency, except that the contract unit is based on the US dollar. Taking the Japanese yen as an example, the calculation procedure is as follows:

Minimum unit of change Exchange rate Contract Units Lot size USD value per pip ,000 1 USD.

If the exchange rate of the yen rises, will each point of ** be the dollar? ,000 1 USD.

The answer is no, the Japanese yen and all indirect currencies are subject to exchange rate fluctuations.

To add that some banks or brokers do not necessarily use the contract unit to calculate indirect currencies in US dollars. For example, the Japanese yen may be 12,500,000 yen in lots.

In the trading system of the broker, the profit and loss of each lot of currency held by the customer is displayed in real time with the market changes, and the customer does not need to calculate the profit and loss by himself, and the details can be known by participating in the demo account.

As far as my 10 years of foreign exchange trading experience is concerned, foreign exchange professional trading mainly depends on the distribution of strategies, as well as profit specifications, long-term trading refers to the trading of holding a position for more than one trading day, and ** trading refers to the transaction of closing positions within the day, and the two are just a matter of market length. According to relevant survey data, for some successful investor groups, it will be found that the proportion of long-term investors is much higher than that of ** investor groups. Although the long-term profit will be more, the number of trading investors is still relatively large.

So why do so many investors choose to trade? First, the transaction is convenient for the turnover of fundsMany FXCM investors will be optimistic about a wave in advance when trading, and when the time is ripe, they will buy it immediately, and once they make a profit, they will immediately throw it away, which is also called scalping. Keeping the funds in a highly flexible state of operation.

Suppose that on a certain day, ** fluctuates back and forth three times in a certain range, the long-term trader can only earn the volatility of the day at most, while the **trader who repeatedly operates can theoretically earn three times the volatility, and the funds used have not increased. The efficiency of funds has been significantly improved. First, **trading to win by volume** Although the profit earned every day is limited, but several transactions a day, the accumulated profit will be more objective.

For some long-term traders, these profits may not be taken into account at all. Second, reduce the risk of trading when trading, at the end of the day, you can do something you want to do, without staring at the foreign exchange icon all the time, so that the funds are in a highly flexible state. Third, the transaction needs to have accurate foreign exchange analysis for the transaction, if you want to make a profit, you must have a certain foresight of the current trend, otherwise it is easy to liquidate.

The selling price minus the ** price minus the handling fee, and the rest is the profit part.

The spread, the difference in points between the opening price and the closing price.