if you have $1,000 in EUR/USD and gain 100 pips, what would your ROI be?

[teh pk sh0w]

If you invest $1,000 of USD/EUR at 1.4510 (for example) and it increases by 100 pips, what would your ROI be?

Please show me how you came up with your answers please🙂

 

[RichLady]

Lol

 

[N Rothschild]

10 dollars...

 

[RichLady]

Well USD/EUR will never be 1.45 anyways.

 

[teh pk sh0w]

:clap:thanks for the help

 

[GammaJammer]

Well I think you seem to want a bit too much spoon feeding to be honest. Surely the better approach would be to have a go at the calculation yourself first and see if you can do it. Then google for the methodology (believe me, there are tons of sites out there where people have already typed this stuff). THEN, if you're still stuck here, ask for help in a more specific way.

That's why people aren't amenable to your questions imho - you just want everything handed to you by the looks of things. This is a 15 second calculation and you still can't be bothered.

 

[Igat]

If you invest $1,000 of USD/EUR at 1.4510 (for example) and it increases by 100 pips, what would your ROI be?

Please show me how you came up with your answers please🙂

You really aren't giving enough information.

Firstly are you using any leverage?
If so are you using the full $1,000 on the one trade.

If for example you are using no leverage and investing the full amount then it goes (assuming the buy) 100 pips is equal to 1c

$1000/1.4510*(1.4510+0.01) = $1006.89 or $6.89 dollars profit

If you use a traditional risk management method and leverage.

((Fund * risk)/stops)*pips

so if you are prepared to risk 1% of your fund on the trade and have a 20 pip stop

(($1000*1%)/20)*100 = $50

 

[N Rothschild]

You really aren't giving enough information.

Firstly are you using any leverage?
If so are you using the full $1,000 on the one trade.

If for example you are using no leverage and investing the full amount then it goes (assuming the buy) 100 pips is equal to 1c

$1000/1.4510*(1.4510+0.01) = $6.89

If you use a traditional risk management method and leverage.

((Fund * risk)/stops)*pips

so if you are prepared to risk 1% of your fund on the trade and have a 20 pip stop

(($1000*1%)/20)*100 = $50

where u get 6 bucks from? its 10..

 

[Technically Fundamental]

where u get 6 bucks from? its 10..

lol.

amount invested x pips / 1000?

 

[Igat]

where u get 6 bucks from? its 10..

As the poster was not clear as to how the $1000 was to be invested I gave them a leveraged and an unleveraged example.

The unleveraged example was as the poster started with dollars the assumption was he was buying Euros using no leverage.

The 1000 dollars would get him at a rate of 1.4510 (as the Euro is the primary of the pair) 689.17988 Euros. Then should the rate go up 100 pips which as we know in this case is 1 cent and he bought back dollars at a rate of 1.4610 then he would receive $1006.8918 back.

I am not sure how you got your $10 figure to be honest unless you knew the OP was trading using leverage and at $0.10 a pip.

 

[Technically Fundamental]

I was just thinking of spot mini. Nice and simple.

 

[Technically Fundamental]

While we're on the subject of forex can someone explain something to me? I was short cable a few days ago on IG Markets during a period of v low movement expecting a drop in price. The price moved 10 pips offside from entry my short and I was down by £11.60. When it moved 10 pips into profit was £1.16 in profit. Wtf is that about. What am I overlooking?

 

[Igat]

While we're on the subject of forex can someone explain something to me? I was short cable a few days ago on IG Markets during a period of v low movement expecting a drop in price. The price moved 10 pips offside from entry my short and I was down by £11.60. When it moved 10 pips into profit was £1.16 in profit. Wtf is that about. What am I overlooking?

Sounds a bit crazy even if your figures dont account for the spread.

 

[Technically Fundamental]

They did account for the spread. The position was 1.16 contracts mini cfd by the way if you're wondering about the odd amounts. The offside was 10 times greater than the profit though and thats what i couldnt get my head around. I'm getting sick of IG tbh. I need to find another account. Mini dow opens $20 for every $2 mini offside too. 10 points lol.

 

[GammaJammer]

where u get 6 bucks from? its 10

You sure?

 

[cpngtw]

don't you notice he is talking about USD/EUR

 

[Paulie_5]

While we're on the subject of forex can someone explain something to me? I was short cable a few days ago on IG Markets during a period of v low movement expecting a drop in price. The price moved 10 pips offside from entry my short and I was down by £11.60. When it moved 10 pips into profit was £1.16 in profit. Wtf is that about. What am I overlooking?

Only thing I can think of, was it spot fx ? They close spot fx positions at the end of the day and reopen for the next day... so maybe some of your pip profit had already been banked ??

 

[Technically Fundamental]

Nope it wasnt overnight. There must be something I overlooked in the t+c's of a limited risk account. I dont trade forex (since I've had a clue what I was doing lol) so I've never had a chance to notice.

Also is a 10 point spread on the dow high?

 

[RichLady]

extra spread = price for guaranteed stops.

 

[Technically Fundamental]

Duh... Forgot about that you know. I've not been considering it because its not optional in my account. It varies from 3-4.