FM-0110 The Complete Forex Trading Blueprint Module 1 – Forex Foundations Lesson 1.10 How Forex Profits and Losses Are Calculated Estimated Reading Time: 12 Minutes Difficulty: Beginner Why This Lesson Matters In the previous lessons, you learned several important concepts: Currency pairs Pips Lots Leverage Margin You now understand how Forex trades are quoted, how price movement is measured, and how trade size affects exposure. The next question is obvious: How do traders actually make or lose money? This lesson connects everything you have learned so far and shows how Forex profits and losses are calculated in a simple, practical way. Once you understand this lesson, many Forex calculations that previously looked confusing will become much easier. Learning Objectives By the end of this lesson, you should be able to: Understand how Forex profits and losses are calculated. Explain the relationship between pips and lot size. Estimate profit or loss from a trade. Understand why t...
FM-0109 The Complete Forex Trading Blueprint Module 1 – Forex Foundations Lesson 1.9 What Is Margin in Forex? Estimated Reading Time: 12 Minutes Difficulty: Beginner Why This Lesson Matters In Lesson 1.8 – What Is Leverage in Forex? , you learned that leverage allows a trader to control a larger position with a relatively small amount of money. That raises another important question: If I can control a large trade with a small account, what money is the broker actually holding? The answer is margin . Margin is one of the most misunderstood concepts in Forex trading. Many beginners think margin is a fee charged by the broker. It is not. Margin is simply a portion of your own trading funds that is temporarily set aside when you open a trade. Understanding margin will help you avoid unnecessary losses, margin calls, and one of the most common reasons beginner accounts are wiped out. Learning Objectives By the end of this lesson, you should be able to: Define margin in Forex. Under...