Close

Your feedback is important to us!

How would you rate our site on a scale of 1 to 5, 5 being the highest and 1 being the lowest?

  • 1
  • 2
  • 3
  • 4
  • 5

Please enter your feedback in the box below and tell us what you think !

Refresh

Trading & Products

Forex

Learn about the basics and history of the biggest financial market in the world.

Forex Example

We will use the Euro versus the US Dollar, EURUSD, as an example of how to trade FX.

First determine the standard lot size for EURUSD. If you do not know what the standard lot size is you can look it up on our Market Information Sheets.

The standard lot size for EURUSD  is 100,000 EUR.

On standard accounts the minimum trade size is 0.10 lots. 
0.10 lots x 100,000 EUR = 10,000 EUR

In FX a pip is a unit used to measure a movement in price. One pip of EURUSD is 0.0001.

If you bought EURUSD with a lot size of 0.10 (10,000 EUR) you would have made 1 USD for every pip (0.0001) the price of EURUSD moved up because 10,000 x 0.0001 = 1 USD.

If you sold EURUSD with a lot size of 0.10 (10,000 EUR) you would have made 1 USD for every pip (0.0001) the price of EURUSD moved down because 10,000 x 0.0001 = 1 USD.

If you bought 0.1 lots of EURUSD at a price of 1.0800 and the price moved up 50 pips to 1.0850 you would have made a profit of 50 USD because 10.000 x 0.005 = 50 USD.

If you sold
 0.1 lots of EURUSD at a price of 1.1000 and the price moved down 50 pips to 1.0950 you would have made a profit of 50 USD because 10.000 x 0.005 = 50 USD.

Alternatively if the prices in the examples moved in the opposite direction you would have lost the amounts stated.

GKFX Europe is a trademark and trading name of AKFX Financial Services Limited © 2019 AKFX Financial Services Limited – all rights reserved.

RISK WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

Apple, iPad, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. 

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. See our full Risk Warning and Terms of Business for further details.

73% of retail investor accounts lose money when trading CFDs with this provider.