news details-top

How to make money with forex trading smartly.

How to make money with forex trading smartly.

Let’s take a look at an example of how you could have made money with forex trading last week.

You could have earned up to 2 490 $ by forex trading in just one week if you had as little as 300$ on your account.

Here is how to do it in just four trades of only one currency pair!

We deposited to our account 300$, and with the leverage 1:100 we can operate with the volume of 30 000 USD or 0.3 Lots as they are called.

The main driver for this week was GBP/USD. Let’s look at the example.

First Forex trading position:

At forex market open time Monday 17 October we sold 0.1 Lot of GBPUSD at 1.5829.

And in our account we have:

Position: Sell 0.1 Lot GBPUSD at 1.5829

Forex Margin: 158.29 = (Lot*lot size*price)/leverage = (0.1*100 00 GBP*1.5829)/100

Forex Free Margin: 141.71 =Equity – Margin = 300-158.29

Let’s imagine that the next evening 18 October at 20:00 GBP fell in valueand we closed Position at 1.5703 and earned 126 pips. Our Profit is 126$ = (Sell Price- buy Price)* trading Volume = (1.5829-1.5703)* 10 000. Our balance on our forex trading account became 426$ =300$+126.

Now we have 426$ USD it is mean that we can operate with volume of 42 600 USD. For our next forex trade we will open 0.2 lots of GBPUSD!

Second Forex trading position:

After we close First position, we bought 0.2 GBPUSD at 1.5703 and sold it next day 16:00 at 1.5830 and earn 127 pip or 254$. Our balance became 680$.

Third Forex trading position:

After we closed our second deal, we can open another 0.3 lots. The margin will be 474.9$ and with our balance of 680$ we can afford it. We sold 0.3 lot GBPUSD at 1.5830 and again closed this position at 1.5703 which is 127 pip and 381$.

At this point our balance is already 1061 USD!

Forth Forex trading position:

Together with closing our sell position we can buy 0.7 lots of GBPUSD at 1.5703 and we held it till the end of the week. The price is 1.5950. Which is 247 pips or +1 729$ and our collective balance now is 2 790! Where 2 490$ is our profit.

We would have made 627 pips and 2 490$ from 300$ for 1 week of forex trading, if we had made all these trades that week.

Open a Smart Trading Account with PaxForex and start using all benefits of forex trading now.

Open a Smart Trade Account now risk free and start practicing today.


news details-bottom