Hi -
I'm working out the way FOREX commissions will affect my trades using EFX Group, also I've used an example below to compute profits. If that example calculates 9, can anybody tell me?
EFX Group Use:
- A spread of two pips on the GBP:USD
- Commission of $5 per $100,000 traded
so...
I exchange 5 lots (1 lot = $100,000)
GBP:USD: 1 pip = $10 for 1 lot
Gross pips created on this trade 4
NetPips = 4 - 2 (spread) = 2
Gross Profit = NetPips * $10 * 5 lots = two * $10 * 5 lots = $100
Commission worth = $5 * 5 lots = $25
NetProfit = $100-$25 = $75???