What is the average profit margin in forex trading?

[Salman1]

First you should understand what is margin?

A forex margin account is very similar to an equities margin account - the investor is taking a short-term loan from the broker. The loan is equal to the amount of leverage the investor is taking on. Before the investor can place a trade, he or she must first deposit money into the margin account. For more detail visit https://www.vpsforextrader.com/

, we will explain to you how you can use the leverage and how much you can earn?

Newly Enrolled Clients >>

1:1 Leverage = 1% PROFIT = 0.1% RISK
If we take 1:1 Leverage means 100% Margin will be used. So, 1000 USD can buy 1,000 USD Value of Commodity.
Suppose Price of XYZ Commodity is 1000 USD and you have account balance of 1000 USD then you can buy only 1 Qty. of XYZ = 1000 x 1 = 1000 USD
RISK >> If STOP LOSS we keep 0.1% (Price 1000 USD – 0.1% Risk i.e. 1 USD)
So your loss will be 1 USD. (1000 USD – 1 USD = 999 USD)
RETURN >> If stock price moves from 1000 to 1010 = 1% movement in Price, You used 1:1 Leverage so 100% of your 1000 USD, you get 10 USD as PROFIT

1:10 Leverage = 10% PROFIT = 1% RISK
If we take 1:10 Leverage means 10% Margin will be used. So, 1000 USD can buy 10,000 USD Value of Commodity.
Suppose Price of XYZ Commodity 1000 USD and you have an account balance of 1000 USD then you can buy 10 Qty. of XYZ = 1000 x 10 = 10000 USD you can use against 1000 USD of capital.
RISK >> If STOP LOSS we keep 1% (Price 1000 USD – 0.1% of 10000 USD i.e. 10 USD) So Your LOSS will be 10 USD. 1% of your Capital 1000 USD is 10 USD. (1000 USD – 10 USD = 990 USD)

RETURN >> If stock moves from 1000 to 1010 = 1% movement in Price. You used 1:10 Leverage so 1% of 10,000 USD = 100 USD = 10% Return on Invest Capital 1000 USD

1:200 Leverage = 200% PROFIT = 20% RISK
If we take 1:100 Leverage means 200% Margin will be used. So, 1000 USD can buy 200,000 USD value of Commodity.
Suppose Price of XYZ Commodity 1000 USD and you have account balance of 1000 USD then NOW you can buy100 Qty. of XYZ Price = 1000 x 200 = 200,000 USD

RISK >> If STOP LOSS we keep 10% (Price 1000 USD- 0.2% of 200,000 USD i.e. 200 USD) So Your LOSS will be 200 USD = 20% loss from your Invested capital (1000 USD – 200 USD = 800 USD)

RETURN >> If Stock moves from 1000 to 1010 = 1% movement in Price. You used 1:200 Leverage so 1% of 200,000 USD = 2000 USD PROFIT

[Lilly Hardson]

The demo account is very essential trading tool. Before start live trading a Forex, trader should try the demo account because it gives practical trading knowledge. Most of the Forex brokers now provide the free demo account facility but among all I select ForexOne broker to use the demo account because in their demo account they give all types of real trading tools. I have practiced in their demo account for six months continuously.

[Jo Eshuijs]

With Forex4you broker I started of my trading journey. Before choosing them, I check their security issue. As a highly regulated trading broker they always ensure the higher security of funds and investments. Without them I never trust any broker and they always give the best facilities to me. They give re-quote, slippage and dealing desk free trading platforms. To become a professional Forex trader from them I get daily trading analytic support.

[maspluto]

the selection of existing brokers must be able to be considered properly, this is needed and needed so that traders can be more leverage in getting the security and comfort of trading and can become a trader of the month Tickmill.