A. I have a three-step checklist to calculate your profit and loss on any Forex trade…
Here’s the AUD/USD trade which you banked a profit.
Step #1: Calculate the entry market exposure
Entry exposure = (Entry price X Mini-lot)
= (0.6700 X 10,000 units)
This means, when you buy 1 mini-lot or 10,000 units you’ll be initially exposed to 6,700 US dollars’ worth of AUD (Australian dollars)
Step #2: Calculate the exit market exposure
Exit exposure = (Exit price X Mini-lot)
= (0.6780 X 10,000 units)
This means, when you close your mini lot or 10,000 units you’ll end up with an exit exposure of $9,780 US dollars’ worth of AUD (Australian dollars).
Step #3: Calculate the net exposure
Now you’ll simply subtract the difference between your exit and your entry exposure to see what you profit will be in USD dollars.
Net exposure = (Exit exposure – Entry exposure)
= ($9,780 - $6,700)
Step #4: Calculate the profit in rands from your Forex trade
All you’ll then do is to convert the profit in dollars to rands is by going onto google and typing in USD/ZAR and multiply the rate it to the net exposure.
Profit in rands = (Net exposure X USD/ZAR Exchange rate)
= ($3,080 X R14.72)
Now you have a four-step checklist to calculate your Forex profits with each trade…
How I became a professional Forex trader - and how you can do exactly the same
My name’s Timon Rossolimos and I am a professional trader.
I run a small trading newsletter in the heart of Gauteng, Johannesburg, and have been doing so for the past three and a half years.
Before that I managed a restaurant, traded for myself and worked at a few broker houses.
It’s there I first became interested in trading - but with normal trading in shares, not realising just how profitable trading the currency markets could be.
I was trying to find a genuine way to profit from Forex trading among all the misinformation and downright lies bandied about on the web.
What a loyal MATI Trader System Programme Member has to share:
“The programme is filled with so many elements to trading that’s taught in the simplest way. Thank you for the book and the videos lessons…
Everything you’ve given us is absolute GOLD and I can’t wait to implement everything… I will spend the next week going through the calculations and preparing for my new trading portfolio for 2020…
– Brandon Ados
REPLY: I appreciate the kind words… My only thing I can add is this. Feel free to take your time to practise, learn the ropes on how the markets move and when you feel comfortable with the realities of trading, then GO FOR IT! The market isn’t going anywhere, and will be ready for you to bank your forever income.
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Q “I’m looking to buy the AUD/USD at an entry price of 0.6784 and set my stop loss at 0.6720. My account size is R30,000 account and I only want to risk R600 with my Forex trade. Can you tell me how I can calculate how many CFDs I need to buy with my Forex trade?”
A. The easiest way to calculate how many CFDs you’ll need to buy, is by first converting the R600 max risk into US dollars. At the time of writing this, the USD/ZAR exchange rate is at R14.70.
This means you’ll be willing to risk $40.80 (R600 ÷ R14.70) in your CFD Forex trade.
Next you’ll simply divide the $40.80 risk into the difference between your entry and stop loss price to get the number of CFDs you’ll buy.
No. CFDs to buy = [Risk in trade ÷ (Entry – Stop loss price)]
= [$40.80 ÷ (0.6784 – 0.6720)]
= $40.80 ÷ 0.0064
= 6,375 CFDs
This means, depending on your broker you’ll buy 6,375 mini CFDs in this trade…
As most brokers have increments of 1,000 units, you’ll round down and buy 6,000 Mini CFDs to ensure you don’t risk more than R600 in your trade…
NOTE: With one of our recommended brokers, you’ll simply divide the final number of CFDs by 1,000 to get your answer…
With Rand Swiss or Pro Trader, you’ll type in 6 CFDs in order to be exposed to 6,000 units of the Forex currency pair…
See below as an example…
Founder, MATI Trader System