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profit and loss . Today we will learn about profit and loss.
Currency trading offers a challenging and profitable opportunity for well-educated investors. However, it is also a risky market, and traders must always remain alert to their trade positions. The success or failure of a trader is measured in terms of the profits and losses (P&L) on his or her trades. It is important for traders to have a clear understanding of their P&L, because it directly affects the margin balance they have in their trading account. If prices move against you, your margin balance reduces, and you will have less money available for trading.
The actual calculation of profit and loss in a position is quite straightforward. To calculate the P&L of a position, what you need is the position size and by how many pips the price has moved. The actual profit or loss will be equal to the position size multiplied by the pip movement.
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Currency trading offers a challenging and profitable opportunity for well-educated investors. However, it is also a risky market, and traders must always remain alert to their trade positions. The success or failure of a trader is measured in terms of the profits and losses (P&L) on his or her trades. It is important for traders to have a clear understanding of their P&L, because it directly affects the margin balance they have in their trading account. If prices move against you, your margin balance reduces, and you will have less money available for trading.
The actual calculation of profit and loss in a position is quite straightforward. To calculate the P&L of a position, what you need is the position size and by how many pips the price has moved. The actual profit or loss will be equal to the position size multiplied by the pip movement.
Follow smarttradefx on facebook and twitter for our latest announcements.
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