How to calculate the loss and profit of foreign exchange?

First of all, we should consider the change of foreign exchange rate. Investors can make money from exchange rate fluctuations, 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 point is actually the exchange rate. For example, 1 USD is converted into 130.25 yen, and 13025 yen can be said to be 13025 points. When the Japanese yen fell to 13 1.25, it fell by 65438+. Every point of each currency, such as Japanese yen, euro, British pound and Swiss franc, represents a different value, and the value of each point of Japanese yen and Swiss franc at different price points is also different. Only when the euro and the pound are standard currencies, its exchange rate against the dollar represents $65,438+00 at any price. In contract spot foreign exchange trading, the more points you earn, the more gains you make, and the less points you lose, the less losses you make. Of course, the number of gain and loss points is directly proportional to the number of gain and loss points.

Secondly, we should consider the expenditure and income of interest. If it is a short-term investment, such as the end of the transaction on the same day, or within one or two days, you don't have to consider interest expenses and income, because the interest expenses and income in one or two days are very small, which has little impact on profit and loss. But for medium and long-term investors, the interest issue is an important link that cannot be ignored. For example, when an investor sells the pound at a price of 1.7000, the price of the pound is still in this position one month later. If the interest on selling pounds is 8%, the monthly interest payment will be as high as $750, which is not a small expense. Judging from the current investment situation of ordinary residents, many investors pay more attention to interest income and ignore the trend of foreign currency, so they all like to buy high-interest foreign currency, and as a result, they lose more because of small losses. For example, when the pound falls, investors buy it. Even if a contract earns interest of $450 a month, the pound drops by 500 points a month, losing $5,000 points. Interest income can't make up for the loss caused by the fall of the pound. Therefore, investors should put the trend of foreign exchange rate in the first place and the income or expenditure of interest in the second place.

Finally, we should consider the expenses of handling fees. Investors buy and sell contract foreign exchange through financial companies, so investors should include this part of the expenditure in the cost. The handling fee charged by financial companies is based on the number of contracts bought and sold by investors, not on profit and loss, so this is a fixed amount.