HELP PLEASE: A worked commission exandle

thread: HELP PLEASE: A worked commission exandle

  1. #1
    Junior Member Aarok_sgb's Avatar
    1

    HELP PLEASE: A worked commission exandle

    Hi -

    I am working out just how FOREX commissions will affect my transactions utilizing EFX Group, and I've used an example below to calculate profits. Can anyone tell me if that case calculates correctly?

    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 made on this commerce 4

    NetPips = 4 - 2 (spread) = 2

    Gross Profit = NetPips * $10 * 5 lots = 2 * $10 * 5 lots = $100

    Commission value = $5 * 5 lots = $25

    NetProfit = $100-$25 = $75???

  2. #2

  3. #3

  4. #4
    Junior Member Wixxayms's Avatar
    1
    Hi -

    I'm working out the way FOREX commissions will influence my transactions utilizing EFX Group, and I have used an example below to compute profits. Can anybody tell me if that case calculates correctly?

    EFX Group Use:
    - A spread of 2 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 made on this commerce 4

    NetPips = 4 - 2 (disperse ) = 2

    Gross Profit = NetPips * $10 * 5 lots = 2 * $10 * 5 lots = $100

    Commission worth = $5 * 5 lots = $25

    NetProfit = $100-$25 = $75???
    efx members of nfa?? Or any organization

  5. #5
    Junior Member John's Avatar
    1
    efx members of nfa?? Or any organization
    Check the NFA website and you're going to find out.

    Or, browse the EFX thread.

    Either way, a small effort will be rewarded.

  6. #6
    If you have any questions in reference your broker, your needs to contact them and have them explain their commission process to you. You will get your answer a lot faster.

    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???

  7. #7
    Senior Member rubesnsbelmokte's Avatar
    164
    I exchange 5 lots (1 lot = $100,000)

    No, 1 lot GBP/USD is GBP 100,000 / USD 197,000

    Commission value = $5 * 5 lots = $25

    Commission each side is ((197,000*5)/100,00)*5 = 49,25USD

    You will pay that if you enter and when you exit the transaction.
    Internet Profit is whatever you make in your commerce minus 2*commission.

    GBP/USD has become the most expensive pair commissionwise on EFX, in pips it provides 1.97 pips to a disperse with the current exchange-rates in effect.

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