Does trade of ONE single lot in EURUSD forex exchange makes profit of "10,000 US$" if EURUSD exchange rate hikes from 1.29810 to 1.39810 @ Leverage 1:100 ?? REALLY DOES IT ??

[[Deleted]]

Hello Friends,

I am newbie, age 32yrs, learning first time the FXRICH terminal DEMO client for EXCHANGE of EURUSD.
Currently i am still working on DEMO version to understand the parameters.

Can anybody explain me this ??
Using logic's i am still confused that if i invested on 500 US Dollars and trade at "1 Lot" = 250 US Dollars
how is it really possible to make "10,000.00" US Dollars if EURUSD hikes from 1.29810 to 1.39810?? LOGICALLY HOW??

On the terminal i selected LEVERAGE 1:100 and found that i can make big loss OR HIGH PROFIT with this LEVERAGE ratio.

I would like to ask this question by putting a example, as i am a newbie for example:-

Suppose at Day "0" EUROUSD exchange rates are

1 Euro = 1.29810 U.S. dollars

1 Lot = 250 US$ = 192.589 Euro (Investment)


And suppose after "2" Days Euro becomes strong
And after "2" Days EUROUSD exchange rates are

1 Euro = 1.39810 U.S. dollars

1 Lot = 250 US$ = 178.814 Euro (Value only for reference)


To make good profit from it I buy at low rate and sell at high rates.
One Single lot buy at 1.29810 and sell at 1.39810
will make me US$ 10,000.00 (IS THIS TRUE??)
(In Words: Ten Thousand US Dollars??? REALLY ??)

Now what I understand that,
I Invested 250 US$ 2 days ago will invest me 192.589 Euro
After 2 days exchange rate hits 1.3981
So i sell 192.589 Euro @ rate 1.3981 = 269.25 US Dollars

So, actually i invest at low rate and buy 250 US$ @ 1.2981
and after 2 days i sell same at higher rate at 1.3981
which makes me profit of "" 9.25 US Dollars ""
and NOT ""10,000.00"" US Dollars.

Can anybody explain me this ??

Regards,

Rohan Doshi.

Email:- [e-mail]

[Ubzen]

rohan.doshi:
I am newbie...

Try going through the BabyPips Tutorials.

[William Roeder]

One Single lot buy at 1.29810 and sell at 1.39810 will make me US$ 10,000.00 (IS THIS TRUE??)

Yes. 1000 pips @ $10/pip/lot = $10K. Standard account (100k/lot)

Leverage is irrevalent to your question as long as you have enough to open and maintain one lot.

EURUSD moves 100-200 pips each day (ATR) So you can be down 400 pips ($4000) after two down days before it rebounds. Better have at least $10k in your account.

[dabbler]

rohan.doshi:
Hello Friends,


Can anybody explain me this ??
Using logic's i am still confused that if i invested on 500 US Dollars and trade at "1 Lot" = 250 US Dollars
how is it really possible to make "10,000.00" US Dollars if EURUSD hikes from 1.29810 to 1.39810?? LOGICALLY HOW??

I lot is typically 100,000 units of the base currency. You are trading on MARGIN, which means you only have to put up a small amount (1/100th at 100:1 leverage) of the amount you are trading.

Use the BabyPips tutorials (as suggested above) to get your Basics understood.