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Sample Trades

The base currency (first currency listed in the currency pair) is the basis for the buy or the sell. As an example, the US Dollar is the base currency for USD/JPY (US Dollar/Japanese Yen). The current bid/ask price for USD/JPY could be 117.20/117.23, which means you could buy $1 US for 117.23 Japanese Yen, or sell $1 US for 117.23 Japanese Yen.

In the Forex market, trading is always in currency pairs, such as EUR/USD or USD/JPY.

Forex Symbol	Currency Pairs	Trading Terminologies
EUR/USD	Euro / U.S. Dollar	Euro
GBP/USD	British Pound / U.S. Dollar	Cable or Sterling
USD/JPY	U.S. Dollar / Japanese Yen	Dollar Yen
USD/CHF	U.S. Dollar / Swiss Franc	Dollar Swiss
USD/CAD	U.S. Dollar / Canadian Dollar	Dollar Canada
AUD/USD	Australian Dollar / U.S. Dollar	Aussie Dollar or Aussie
EUR/GBP	Euro / British Pound	Euro Sterling
EUR/JPY	Euro / Japanese Yen	Euro Yen
EUR/CHF	Euro / Swiss Franc	Euro Swiss
GBP/JPY	British Pound / Japanese Yen	Sterling Yen

Example

Current Spot on EUR/USD = 1.2000 (One Euro is Worth 1.2000 US Dollars)
Entry Trade: Buy $500,000.00 of Euro at 1.2000 Selling Against US Dollar
Exit Trade: You Sell $500,000.00 of Euro at 1.2040 Against buying back US Dollar
Profit & Loss from trade: 1.2040-1.2000 = 40 pip's*
**Pip Value per $100,000 traded = $10
Gross Pip's x Pip Value x 5 = Profit (40 x $10 x 5 = $2,000)
Assume the Account has $50,000 in Equity
This Sample trade represents 5 contracts at $100,000 each or 10:1 Leverage
This sample trade represents a Gross Profit of 4%.