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 buying USD/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/JPY in 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.)