How to calculate forex trading profit and loss?

1, "point": foreign exchange margin trading, the smallest unit to become "point".

For example, the euro against the U.S. dollar currency pair from 1.1120 fluctuations to 1.1121 is 1 point fluctuations, the dollar against the yen currency pair from 129.11 to 129.12 is 1 point fluctuations.

For example, a 50-point swing is, for example, EURUSD 1.1120 to 1.1170 or 1.1120 to 1.1070 is 50 points.

2, "point value": in the case of trading lot 1 standard lot, 1 point of fluctuation (regardless of trading platform leverage multiples) is 10 U.S. dollars in fluctuations, so 50 points in the case of 1 standard lot is 500 U.S. dollars in fluctuations.

3, "foreign exchange profit and loss calculation": due to the foreign exchange is a two-way trading mechanism, so foreign exchange transactions can be bought up, but also can buy down, so only when we look at and make the right direction of the market when we are making money, otherwise it is a loss of money.

Expanded Information:

Main Factors Affecting Exchange Rates:

1, Political situation: International and domestic political situation changes have a great impact on the exchange rate, the situation is stable, the exchange rate is stable; the situation is volatile, the exchange rate fell. The aspects to be concerned about include international relations, partisan struggles, the situation of important government officials, unrest, riots and so on.

2, the economic situation: a country's economy in all aspects of the combined effect of the good and bad, is the most direct and most important factors affecting the exchange rate of the national currency. Which mainly consider the level of economic growth, balance of payments, inflation levels, interest rate levels and other aspects.

3, military dynamics: war, local conflicts, riots, etc. will cause insecurity in a region, the relevant region and the exchange rate of the weaker currencies will have a negative impact, while away from the events occurring in the country's currency and the exchange rate of the traditional safe-haven currencies are favorable.

4, the government, the central bank policy: the government's fiscal policy, foreign exchange policy and the central bank's monetary policy on the exchange rate plays a very important role, and sometimes the role of the decision. Such as the government announced the devaluation or appreciation of the national currency; the central bank's interest rate rise and fall, market intervention and so on.

Market psychology: the psychological expectations of foreign exchange market participants, seriously affecting the direction of the exchange rate. For the appreciation or depreciation of a currency, the market tends to form their own views, in the case of reaching a certain **** knowledge, will be in a certain period of time around the exchange rate changes, which may occur when the exchange rate rise and fall and the fundamentals are completely detached from the situation or the central bank intervention is ineffective.

Baidu Encyclopedia - Foreign Exchange Transactions