Open forex opsitions:

The base currency is the first currency in the currency pair, and the counting currency is the second currency. For example, the EURO / USD has the EURO as the base currency.Close forex opsitions:

Before you close your positions, you can see whether you are making a profit or a loss on the Forex trading platform.

The first Forex trading instance (buy USD/JPY):Login into the forex platform，we do BUY USD/JPY，which means we anticipate USD will appreciate against JPY，in reverse，we can also SELL USD/JPY，if we anticipate USD will depreciate against JPY，The base currency is the first currency in the pair. Lots of people are wondering how leverage is used.

For instance，we now deposit $1000usd into account， leverage of 1:100 is used，USD/JPY requires a transaction deposit of USD$50/unit，and say we BUY 6 units of USD/JPY。

So the required transaction deposit would be

$50x6= $300，and with leverage of 1:100，therefore $300 x 100=$30000。As in this instance we use $300 deposits and do real trading of

buyingUSD/JPYin amount of$30000，$300 is the required deposit，in other words, $300 is the minimum amount you need to keep there. If loss occur, the amount in your account is lower than $300, your positions will be cut off.We first deposit $1000 in account，$1000-300=$700，so basically this $700 is our possibly loss，as if the amount lowering than $300, your positions would be cut off (This is only an example due to the market violence, situations may vary.)。

How do we count the percentage?

We actually make a trade of buying USD/JPY in total of $30000，however $700 is the most lose we can afford，thus 700/30000=0.0233，which is 2.3%，in this case，your tolerence for USD/JPY depreciating is 2.3% from the initial price bought。

Key numbers in this case:

1. deposit: $1000 USD

2. required transaction deposit : $300 USD 6 units of

USD/JPY (BUY)3. actual trading amount: $30000 USD (BUY USD/JPY)

4.possible loss: $700 USD (This is only an example due to the market violence, situations may vary.)

The second Forex trading instance (sell USD/JPY):For instance, but in reverse way, we now sell USD/JPY.

The same, we now deposit $1000usd into account， leverage of 1:100 is used，USD/JPY requires a transaction deposit of USD$50/unit，and say we SELL 2 units of USD/JPY。

So the required transaction deposit would be

$50x2= $100，and with leverage of 1:100，therefore $100 x 100=$10000。As in this instance we use $100 deposits and do real trading of

sellingUSD/JPYin amount of$10000，$100 is the required transaction deposit，in other words, $100 is the minimum amount you need to keep there. If loss occur, the amount in your account is lower than $100, your positions will be cut off.We first deposit $1000 in account，$1000-100=$900，so basically this $900 is our possibly loss，as if the amount lowering than $100, your positions would be cut off (This is only an example, due to the market violence, situations may vary.)。

How do we count the percentage?

We actually make a trade of selling USD/JPY in total of $10000，however $900 is the most lose we can afford，thus 900/10000=0.09，which is 9%，in this case，your tolerence for USD/JPY apreciating is 9% from the initial price sold。

Key numbers in this case:

1. deposit: $1000 USD

2. required transaction deposit : $100 USD 2 units of

USD/JPY (SELL)3. actual trading amount: $10000 USD (SELL USD/JPY)

4.possible loss: $900 USD (This is only an example, due to the market violence, situations may vary.)