How to trade forex?
|Buying EURUSD at a price of 1.12591 means that you are buying 1 Euro with 1.12591 US Dollar||Selling EURUSD at 1.23452 means that you are selling € 1 and buying $1.23452.|
In forex trading, traders always buy one currency against the other currency.
A pip and a fractional pip
a price change from 1.12010 to 1.12020
a price change from 114.010 to 114.020.
At PSS, traders can trade a factional pip which is as small as 1/10 of a pip.
The size of the position
1 lot = 100,000
|Trading 1 lot of EURUSD corresponds to a position size of 100,000 Euro.||0.01 lot is the smallest position to be traded in amount of 1,000 Euro|
At PSS, you can trade any currency pairs as little as 0.01 lot and as many as 50 lots.
Calculating trading profit
|Sell €10,000 (0.1 Lot) EURUSD at 1.12509||10,000.00||11,250.90|
|Buy €10,000 (0.1 lot) EURUSD at 1.12159||10,000.00||11,215.90|
This trade would have resulted in a profit of $35. The profit always arises in the price currency, i.e. in our example in USD, and is then immediately converted to the account currency.