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Forex Examples
Trading forex with City Credit Capital has been made simple and fast using our proprietary technology MarketsTrader. Review the examples below to see how easy it is for yourself.
Opening a position
You decide to go long dollar against the yen. Our quote is 104.97/105.02. You buy one contract (equivalent of $100,000) at 105.02. To open this position, you just need to supply a deposit of $1000 (1% of $100,000).
Interest adjustments
If the position remains open overnight (when we run our day-end processing) your account is debited or credited daily to reflect the effect of the interest rate differential between the dollar and the yen. Dollar interest rates are higher than yen rates and you receive interest for holding a long position in the higher rate currency, so the interest adjustment is credited to your account.
Closing the position
Three weeks later, USDJPY has risen to 106.85/106.90 and you take your profit by selling one contract at 106.85. Your profit on the trade is calculated as follows:
Calculating profilts
Buy 1 contract at 105.02 (¥10,502,000)
1% margin required ($1,000*)
Sell 1 contract at 106.85 (¥10,685,000)
¥183,000/106.85 = $1,712.68
Total Profit (profit plus interest)1712.68+(.70x3)
Total Profit = $1,714.78
Return On Capital 85.7%
*Subject to variation
