Income from currency trading in the Forex market is formed by the difference between buying and selling rates of different currencies in different time periods.For greater clarity, we give below a chart of the exchange rate EUR / USD for a few days of November - December 2003goda.
November 26 14:37 GMT trading system gave a signal to buy the euro against the U.S. dollar 1.1850, and December 1 at 15:55 GMT position was closed by a trailing - on foot 1.1968, ie euro were sold and bought dollars (to perform the reverse operation). Now we perform some simple arithmetic steps and calculate the income earned
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How can I earn an income in the market FOREX?
Background: security deposit - $ 10,000, the bank's leverage - 1:100, was bought by 100,000 euros, although the shoulder allowed to buy 800.000 euro, but in order to minimize the risks involved in the transaction was approximately 10% of the deposit.
November 26, 2003. at 14:37 GMT - buying 100,000 EUR, the rate of purchase - 1.1850
December 1, 2003. at 15:55 GMT - closing a position - sales of 100,000 EUR, the selling rate - 1.1968
26.11.03g.: 100,000 x 1.1850 = 118,500 USD - bought 100,000 EUR, sold 118,500 USD;
01.12.03g.: 100,000 x 1.1968 = 119,680 USD - selling 100,000 EUR, bought 119,680 USD;
RESULT: received income 119,680 - 118,500 = 1,180 USD.
Thus, the transaction is made, the position is closed, the shoulder is returned to the bank (brokerage) revenue remained the investor. In 4 days has been earned 1,180 USD or 11.8% of the amount of initial investment in a security deposit of 10,000 USD.
This is a good result for trading, but such successful transactions do not happen every day, sometimes you have to wait several days of such a favorable moment to make a deal, but they tend to bear fruit, sometimes very good, to appreciate the power and attraction of foreign exchange Forex market for the investor.
November 26 14:37 GMT trading system gave a signal to buy the euro against the U.S. dollar 1.1850, and December 1 at 15:55 GMT position was closed by a trailing - on foot 1.1968, ie euro were sold and bought dollars (to perform the reverse operation). Now we perform some simple arithmetic steps and calculate the income earned
.How can I earn an income in the market FOREX?
Background: security deposit - $ 10,000, the bank's leverage - 1:100, was bought by 100,000 euros, although the shoulder allowed to buy 800.000 euro, but in order to minimize the risks involved in the transaction was approximately 10% of the deposit.
November 26, 2003. at 14:37 GMT - buying 100,000 EUR, the rate of purchase - 1.1850
December 1, 2003. at 15:55 GMT - closing a position - sales of 100,000 EUR, the selling rate - 1.1968
26.11.03g.: 100,000 x 1.1850 = 118,500 USD - bought 100,000 EUR, sold 118,500 USD;
01.12.03g.: 100,000 x 1.1968 = 119,680 USD - selling 100,000 EUR, bought 119,680 USD;
RESULT: received income 119,680 - 118,500 = 1,180 USD.
Thus, the transaction is made, the position is closed, the shoulder is returned to the bank (brokerage) revenue remained the investor. In 4 days has been earned 1,180 USD or 11.8% of the amount of initial investment in a security deposit of 10,000 USD.
This is a good result for trading, but such successful transactions do not happen every day, sometimes you have to wait several days of such a favorable moment to make a deal, but they tend to bear fruit, sometimes very good, to appreciate the power and attraction of foreign exchange Forex market for the investor.
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