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  1. #1
    Junior Member

    calculation profit !!!

    Hey guys, today i did open a forex position on a demo account of mt4 for the first time (i just've traded binary option so far) to better understand how stop loss and pips calculation works.

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    After some good signals i choosed to open the position almost at the beginning of the first bearish candle (red arrow) and closed almost at the end of the 3rd bearish one (it is the first fibonacci retracement!)
    I went with 500.000,00 € and ended at 500.498,38 €. Volume, during the order, was 5.00(??)
    Can you explain me how i came to that profit and what is this "Volume"?
    Thanks.

    P.S. i've read some lot,minilot,etc.. explanation but still a bit confusing to me i just started trading 1month so far.
    Last edited by jojofra; 01-06-2014 at 05:19 PM.

  2. #2
    Junior Member allanrock's Avatar
    Hi jojofra,

    If you have that profit of 498.38 € from this move, which I couldn’t see how much pips is, but something about 10 pips (1 pips is a 1/100 of the one percentage (1/100)). That mean you have profit of 498/10 = 50 € per pip that mean your position is 50 * 100 * 100 = 500 000 EUR vs USD (EUR/USD). 100k is one lot (one minilot is 10k), so your position is something about 5 lots. I hope this basic explanation will help you If you don’t understand something else ask here!

  3. #3
    Administrator Martin Kay's Avatar
    I don't think this thread has to do with binary options trading... I thinking about opening a new room for forex discussions, but let's focus on binary options at the moment (:

    sorry guys, discussion is closed.

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