AI Hub 26 December 2023 What Is the Process for Computing Profit and Loss in Forex Trading? Forex trading is a popular way to make money in the financial markets. The process of computing profit and loss in Forex trading is quite simple, but it can be complicated for beginners. To understand how to calculate profit and loss in Forex trading, it is important to have a basic understanding of currency pairs and the concept of leverage. A currency pair consists of two currencies, such as the Euro (EUR) and US Dollar (USD). When you buy or sell a currency pair, you are essentially buying one currency while simultaneously selling another. For example, if you buy EURUSD at 1.1700, you are buying one Euro while simultaneously selling one US Dollar. The concept of leverage allows traders to open larger positions with less capital than would otherwise be...
