Forex buy and sell
The transaction size is 10, What is your profit or loss? You can also calculate your unrealized profits and losses on open positions. Just substitute the current bid or ask rate for the action you will take when closing out the position. For example, if you bought , Euros at 1. Similarly, if you sold , Euros at 1. Remember that you must also subtract any dealer commissions or other fees from your profits or add them to your losses to determine your true profits and losses.
Also, remember that the dealer makes money from the spread. If you immediately liquidate your position using the same spread, you will automatically lose money.
In this situation, what will the speculator do? Sell US dollars and buy Swiss francs at 1. Sell Swiss francs and buy US dollars at 1. That eliminates C and D as possible answers. When you sell dollars to a dealer, the dealer wants to buy the currency at the bid price.
In this case, when you sell dollars to the dealer, you will receive only 1. No gain or loss D. There is not enough information in the problem to answer the question. When the dealer quotes a spread, the dealer is seeking to buy at the low price and sell at the high price.
If a speculator enters this spread, she will have bought the currency at If you hold your position past 5pm New York time 10pm UK time , your account will be debited or credited at the prevailing holding rate. If you have bought a higher yielding currency you may receive interest; if you have bought a lower yielding currency you may be charged interest.
How do I fund my account? How do I place a trade? Do you offer a demo account? How can I switch accounts? Create an account Trade over 9. Open a demo CFD account. Home Learn Learn forex trading Forex trading examples. CFD trading example 1: Test drive our trading platform with a practice account.