The foreign exchange is the largest market in the world in terms of trading volume, with an average of more
than $5 trillion currencies traded daily. The Forex market allows investors to trade currency pairs 24 hours
a day, 5 days a week and to manage market exposure with the use of leverage.
Foreign exchange trading involves trading one currency pair against another, predicting that one currency
will rise or fall against another. Currencies are traded in pairs, like the Euro versus the US Dollar
(EUR/USD).
BPS Capital was founded by Forex traders, so we have all features a trader needs
- Tight spreads from 0.0 pips
- Deep liquidity
- Up to 1：1000 leverage
- True ECN Pricing
Forex Major Pairs Contract Specifications
Calculating Profit and Loss
In Forex trading, estimated profit and loss is very important for trading risk control. Here we briefly introduce the following two methods:
It is important to be able to work out your own projected profit and loss which can be relatively
easy to do, even without a calculator using this example.
Opening the Position
Buy 1 Lot EURUSD at 1.10340 Buy (+) €100,000 Sell (-) $110,340 Sell 1 Lot EURUSD at 1.10651 Sell
(-) €100,000 Buy (+) $110,651 Buy (+) €100,000 Sell (-) $110,340 + Sell (-) €100,000 Buy (+)
$110,651= +$311
Closing the Position
In this case the trade was profitable $311, the same calculation can be made in pip
terms.
1 Lot EURUSD pip value = $10 Buy at rate 1.10340 Sell at rate 1.10651 31.1 pips profit at $10
per pip= + $311
€100,000- $110,340- €100,000+ $110,651= +$311
In this case the trade was profitable $311, the same calculation can be made in pip terms. 1 Lot EURUSD pip value = $10 Buy at rate 1.10340 Sell at rate 1.10651 31.1 pips profit at $10 per pip= + $311
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. BPS Capital will never ask clients for their credential under any circumstances. Clients must not disclose password to anyone else and must take appropriate steps to keep their information secure by not using an obvious password and ensuring that clients keep their password confidential and change it regularly.
