Hello-
I'm working out how FOREX commissions will affect my trades using EFX Group, and I've used an example below to calculate profits. Can anyone tell me if this example calculates correctly?
EFX Group Use:
- A spread of 2 pips on the GBP:USD
- Commission of $5 per $100,000 traded
so...
I trade 5 lots (1 lot = $100,000)
GBP:USD: 1 pip = $10 for 1 lot
Gross pips made on this trade = +4
NetPips = 4 - 2 (spread) = +2
Gross Profit = NetPips * $10 * 5 lots = 2 * $10 * 5 lots = $100
Commission value = $5 * 5 lots = $25
NetProfit = $100-$25 = $75 ???
I'm working out how FOREX commissions will affect my trades using EFX Group, and I've used an example below to calculate profits. Can anyone tell me if this example calculates correctly?
EFX Group Use:
- A spread of 2 pips on the GBP:USD
- Commission of $5 per $100,000 traded
so...
I trade 5 lots (1 lot = $100,000)
GBP:USD: 1 pip = $10 for 1 lot
Gross pips made on this trade = +4
NetPips = 4 - 2 (spread) = +2
Gross Profit = NetPips * $10 * 5 lots = 2 * $10 * 5 lots = $100
Commission value = $5 * 5 lots = $25
NetProfit = $100-$25 = $75 ???