How to calculate Profit/Loss in Forex Trading? -Learning Center-

For ease of use, most online forex trading platforms automatically calculate the P&L of a traders’ open positions. However, it is useful to understand how this calculation is derived.

To illustrate a typical forex trade, consider the following example.

The current bid/ask price for USD/CHF is 1.6322/1.6327, meaning you can buy $1 US for 1.6327 Swiss Francs or sell $1 US for 1.6322.

Suppose you decide that the US Dollar (USD) is undervalued against the Swiss Franc (CHF). To execute this strategy, you would buy Dollars (simultaneously selling Francs), and then wait for the exchange rate in the foreign exchange markets to rise.

So you make the trade: purchasing US$100,000 and selling 163,270 Francs.(Remember, at 1% margin, your initial margin deposit would be $1,000.) As you expected, USD/CHF rises to 1.6435/40. You can now sell $1 US for 1.6435 Francs or buy $1 US for 1.6440 Francs.

Since you’re long dollars (and are short francs), you must now sell dollars and buy back the francs to realize any profit.

You sell US$100,000 at the current USD/CHF rate of 1.6435, and receive 164,350 CHF. Since you originally sold (paid) 163,270 CHF, your profit is 1080 CHF. To calculate your P&L in terms of US dollars, simply divide 1080 by the current USD/CHF rate of 1.6435. Total profit = US $657.13

Note that Off exchange foreign exchange currencies entails significant risks. Please ensure you invest with funds that you can afford to lose. Past performance is not indicative of future results. International Foreign Currency does not guarantee any profits or freedom of loss.

How Forex market work? -Learning Center-

History of The Foreign Exchange Market

The Foreign Exchange market, also known as the “FX” or “Forex” market, is the biggest financial market anywhere in the world. The daily average turnover is over $1 trillion US — a volume more than thirty times the size of all U.S. equity markets combined.

“Foreign Exchange” occurs when one currency is bought at the same time another is sold. Currencies are always traded in pairs: e.g., EUR/USD (Euro & US Dollar) or USD/JPY (US Dollar & Japanese Yen.)

Around 5% of turnover each day is from governments and companies that buy and sell services or products in a foreign country or that convert foreign currency profits into domestic currency. The other 95% is trading for speculation.

For speculators, most popular forex trade options are the Majors, or the most commonly traded currencies. The Majors include the US Dollar, Canadian Dollar, Australian Dollar, Japanese Yen, Swiss Franc, Euro, and British Pound. Today, more than 85% of all daily transactions involve trading of the Majors.

Forex trading is a true 24-hour market, beginning in Sydney every day and circling the globe as the work day starts in each financial center: Tokyo to London to New York. Unlike other financial markets, forex investors are able to respond to fluctuations in currency, whatever the reason, via online currency exchange or other telecommunication options 24 hours a day.

The forex market is considered an interbank or over the counter market because the transactions take place over the phone or throughonline currency trading. There is no central currency exchange, unlike with the futures or stock markets.

Land-FX 30% Deposit Bonus on every deposit

It is the best bonus promotion among others in Land-FX.

Land-FX is now willing to offer

30% Deposit Bonus Promotion

Up to 3000 dollars

On every Deposit until the maximum bonus amount

The Broker used to offer 10% and 5% Deposit Bonuses though, this time the promotion will outrace others.

Although the bonus amount is not available for withdrawal, it will be credited to your trading account on every deposit and can be used for trading purpose.

How to receive the bonus

This promotion is also for existing clients and clients who already applied for other deposit bonuses.

In case you already have trading accounts with Land-FX, you will need to switch the promotion from the client portal.

In case you don’t still have a trading account with Land-FX, but looking to start trading, please follow the instruction below.

  1. Open a real/live trading account with Land-FX
  2. Verify your information by submitting copies of ID and POA(proof of address)
  3. Apply fo the promotion from the client portal
  4. Make a deposit more than 300 dollars
  5. Receive 30% extra until the bonus amount reaches 3000 dollars

Land-FX Official Website


Some main conditions are as follows:

  • Deposit amount needs to be more than 300 dollars to receive the bonus amount
  • The bonus amount is not available for withdrawal
  • There is no expiration dates for the bonus amount
  • The bonus amount will be deducted when you make withdrawals
  • This promotion is available for one account per person

Land-FX Official Website

XM $30 No Deposit Bonus & 100% Deposit Bonus -Exclusive Offer-

Exclusive Offer ! Not listed in the official website !

XM is an Online Forex & CFD Broker founded in 2,009.

The broker has acquired more than 500,000 clients over the years, and it is growing globally and rapidly.

$30 No Deposit Bonus

Get the free bonus and earn profits without risking your funds.

Main Conditions:

 Bonus Amount  30 dollars
 Withdrawal of the Bonus Amount  Not Available
 Withdrawal of Profit later on  Available without Requirements
 Other Conditions None

How to Receive:

  1. Open a Real/Live account with XM
  2. Submit required Documents(ID & POA)
  3. Request for the Bonus amount through the “Client Portal”

Receive $30 for Free

100% Deposit Bonus

Double up your Funds without restricting your withdrawal conditions. You can receive 100% Deposit Bonus after receiving $30 No Deposit Bonus.

Main Conditions:

 Bonus Amount  Up to 500 dollars
 Withdrawal of the Bonus Amount  Not Available
 Withdrawal of Profit later on  Available without Requirements
 Other Conditions 20% Bonus will be applied on deposit amount more than 500 USD

How to Receive:

  1. Open a Real/Live account with XM
  2. Submit Required documents(ID & POA)
  3. Make a Deposit
  4. Apply for the Bonus through the “Client Portal”

Open an account with XM

The Best is XM

xm

Reviewing their service over the years, XM can be chosen as one of the Best Brokers in the world.

Why XM is The Best? There are lots of reasons of that, and let us compare XM with other averaged Brokers.

Leverage up to 1:888

Not so many Brokers offer leverage more than 1:500. XM is one of a fewer broker with this much high leverage offered through MT4.

Your XM trading accounts are protected by NBP(Negative Balance Protection), so this means that your profit is 888 times more and loss is limited to the invested amount only.

Bonus Promotions and Contests

XM offers several bonus promotions such as:

  • $30 No Deposit Bonus
  • 100% Deposit Bonus
  • Trading Contests

Well, Bonuses shouldn’t be the main reason for choosing your broker, but why not receive it if it is free?

CySEC regulated and ICF protected

CySEC is the most popular financial regulation based in Cyprus. Along with the major authority, XM is a member of ICF(Investor Compensation Fund).

This means that you can be compensated up to 20,000 Euro in case XM failed to meet its obligation with its clients can caused a loss.

Not just a segregated account, but your funds are more than just protected.

No Negative Reviews

Over 7 years, XM has got great reputation built up and there is almost no negative reviews against the broker.

XM takes a good care of its clients and their first priority is its clients’ benefits.

No interference, no price manipulation and no withdrawal delays or rejections.

Go to XM Official Website

Trade Stocks & Metals with “$50 No Deposit Bonus” by XTrade

The largest CFD broker with more than 800 CFD instruments available!

XTrade is one of the largest CFD broker in the world with more than 800 CFD instruments available through one trading platform.

For many Investors, trading CFDs is even better than trading the actual underlying instruments in many ways.

Now XTrade offers variety of bonus promotions, including up to $50 No Deposit Bonus!

Sign up today, and start trading Stocks(shares), Commodities(Metals, Gas etc) and even Forex with free $50 with XTrade.

Before explaining the “No Deposit Bonuses”, let me point out why traders choose XTrade to trade CFDs.

Go to XTrade Official Website

Why CFD tradings XTrade?

  • Access to more than 800 CFDs in one trading account

From anywhere in the world as long as you have internet.

  • High leveraged CFD tradings

Up to 1:200. Now you can trade with small funds.

  • Lower Costs than others

No extra commissions are charged. Spread is the all the cost you need to pay.

  • Dividend bonus paid for Stocks

Just like as if you are a shareholder.

  • Signup and start trading within a few minutes

Process is as simple as possible for anyone.

1. Phone Verification Bonus ($20)

XTrade-Phone-Verification-no-deposit-Bonus

This is the first step to earn up to $50 No Deposit Bonus by XTrade. All you need to do is just verifying your phone number with XTrade, and you will have $20 credited in your accoun.

Please follow the steps below:

1. Login to your account from the official website

xtrade online trading platform login

2. Select Account Options and go to “Phone Verification”

3. Receive SMS message with a verification code

4. Type in the verification code in the screen

5. $20 is all yours

Now go to the next step and earn $30 more.

2. Account Verification ($30)

XTrade-account-verification-no-deposit-bonus

You can earn $30 for free by just verifying your trading account with documents.

XTrade requires copies of ID(Identification Document) and POA(Proof Of Address).

This account verification is one necessary step for all traders in order to make withdrawals.

So why not receive the free $30 now, if you need to receive it anyway later on.

Please follow the instructions below to receive this bonus.

1. Login to your account from the official website

xtrade online trading platform login

2. Select Account Options and go to “Account Verification”

3. Submit required documents

4. $30 will be credited within 2 business days from the approval

Start trading 800 CFDs with XTrade

The Best 100% Deposit Bonuses by Forex brokers

Some gorgeous bonus promotions from online FX brokers.

In order to choose your broker, the bonus promotions can be one thing you may want to consider.

There are some types of promotions such as:

  1. No Deposit Bonus
  2. Deposit Bonus
  3. Trading
  4. Real/live Trading Contest
  5. Demo Trading Contest

Here I will list up one of the most popular bonus “100% Deposit Bonus” and its conditions.

What is 100% Deposit Bonus?

By using a “100% Deposit Bonus”, you can double up your deposit in a second.

For example, if you deposit 1000 dollars, you will have 2000 dollars available in your trading account.

Doubling up the available balance in your trading account means double the leverage and double the opportunities.

It is surely one of the luxurious bonus though, there are always conditions to promotions.

Here, I will list up 5 online Forex brokers in a ranking style with its general conditions.

1. FBS

FBS official website main page

FBS is regulated by IFSC in Belize and CRFIN in Russia, which has succeeded to acquire 1,200,000 real/live account opened in only 7 years of service.

FBS offers the highest leverage in the world which is 1:3000.

FBS might be the most stable broker with enormously gorgeous promotions in the world.

The main conditions of the “FBS 100% Deposit Bonus” is as below.

100% Deposit Bonus maximum amount $20,000
Withdrawal Conditions for the bonus amount 1 standard lot for $3

*One thing you need to be aware of is that if you apply for this bonus promotions, he maximum leverage in your trading account will be limited to 1:500.

Go to FBS Official Website

2. XM

xm.com official website main page

XM is a CySEC regulated broker with 1:888 leverage.

The broker has opened more than 500,000 real/live accounts in the past 7 years.

Not so many gorgeous promotions are run by XM though, the broker offers 100% Deposit Bonus and the main conditions are as below.

100% Deposit Bonus maximum amount $500
Withdrawal Conditions for the bonus amount Not Available

If you deposit more than 500 dollars, you can receive 20% Bonus for the exceeded amount from XM.

*One demerit of the 100% Deposit Bonus would be, this is available for Standard and Micro account only, but not for the XM Zero account where you can trade with average spread from 0.6 pips(including all extra commissions).

Go to XM Official Website

3. FxGlobe

fxglobe official website main page

FxGlobe is a broker which is actively promoting in Europe and also other countries.

The founder of this broker used to be(or maybe also now) a Money Manager and he has made the broker favorable for licensed Money Managers.

If you are a Money Manager, FxGlobe is one broker which is worth contacting for more details.

The main conditions of the 100% Deposit Bonus is as below.

100% Deposit Bonus maximum amount $5000
Withdrawal Conditions for the bonus amount Required lots = Bonus amount / 5

Please note that if you have not traded the required trading lots before making withdrawal, 50% of your profit will be taken by FxGlobe.

If you are looking to trade with FxGlobe longer, the conditions wouldn’t bad for you.

Go to FxGlobe Official Website

4. iForex

iforex official website main page

iForex has been active for over 20 years as a broker and regulated by CySEC.

The broker offers its advanced trading platform called “FxNetTrader” which is even easier and simple in terms of usability.

iForex has got one of the oldest history as a broker.

The main conditions of the 100% Deposit Bonus is as below.

100% Deposit Bonus maximum amount $1000
Withdrawal Conditions for the bonus amount Not available for Withdrawal

Please note that iForex does not allow certain trading methods such as:

  • Scalping
  • EAs
  • Algorithm Tradings
  • API
  • Arbitrage

If your main trading methods are not categorized as above, iForex may be the better choice for you.

Go to iForex Official Website

5. MXTrade

mxtrade official website main page

MXTrade is a broker regulated in Belize, IFSC.

The broker had some regulatory issues in some countries though, so far the broker is not working in bad faith.

Please note that MXTrade does not allow Scalping(within 5 minutes), EAs and arbitrage tradings. If you are going to trade with MXTrade please confirm more details by contacting the customer service.

The main conditions of the MXTrade’s 100% Deposit Bonus is as follows:

100% Deposit Bonus maximum amount Contact MXTrade
Withdrawal Conditions for the bonus amount Required lots = Bonus amount / 10

Go to MXTrade Official Website