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EURUSD
On 27th September 2010, around 10:00 GMT, the price of EURUSD was at:
1.34570 (bid) - 1.34600 (offer)
You believe the Euro will strengthen against  the dollar so you take a buy position with a trade size of 100,000 EUR ($10 per tick, 1 tick is 0.0001), at the offer price of 1.34600.
Over the next few hours the Euro does rise against the dollar and by 13:00 GMT, the price had risen to
1.34850 (bid) -1.34880 (offer).
You decide to realize the profit on this trade and you close your position at the bid price of 1.34850.The price has risen by 0.0025 (25 ticks),，so your profit is$250; ($100,000 X .0025).
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| SUMMARY
Open Price 1.34600
Close Price 1.34850
Difference 0.0025 (25 ticks)
Profit $250 |
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GBPUSD
On 28th September 2010, around 12:00 GMT, the price of GBPUSD was at:
1.58400(bid) - 1.58430(offer).
You believe the British Pound will strengthen against the dollar so you take a buy position with a trade size of 100,000 GBP ($10 per tick, 1 tick is 0.0001),
at the offer price of 1.58430. You place a guaranteed Stop/Loss when you opened the trade at the level of 1.57930, ($500 maximum risk).
Over the next 2 hours the British Pound drops sharply against the dollar and by 13:30 GMT, the price has fallen to
1.57500 (bid) -1.57530 (offer) .
Because you placed the guaranteed stop you are partially protected against this sharp drop and your position is closed automatically at the Stop/Loss level of 1.57930, realizing a loss of $500, (100,000 X 0.0050).
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| SUMMARY
Open Price 1.5843
Closed Price (S/L) 1.5793
Difference 0.0050 (50 ticks)
Loss $500 |
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