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Forex example: 25% return on EUR / USD

Forex example: 25% return on EUR / USD
Forex example: 25% return on EUR / USD
Are you looking for a forex example? Here you can see how 100 euro was earned at the EUR / USD exchange rate. In three hours time, a return of 25% was achieved. Forex offers a lot of opportunities, just take a look!


Forex is very popular
Forex trading is very popular with today's independent investors. Because forex goes fast and you can do it yourself with a handy program. Also suitable for investing with little money. You no longer need to go to a bank to invest, but you can simply invest at home. The recipe for forex is simple: you bet on a price change of exchange rate and make a profit if your expectation comes true.
Forex is therefore about predicting a course. But how do you predict the course as an independent investor? Many investors use the internet for this. They find relevant news on news sites about the fairs. And on this basis they make expectations about prices. Sounds simple, this article gives a forex example.A forex example: 25% return on EURO / DOLLAR
On Wednesday 5 June the following message appeared on the news site deaandeelhouder.nl. It was one of the many messages that day, because the site is always kept up to date. Highly recommended, like many other news sites about stocks, the forex trade!


The message states that the American services sector has grown considerably. Good news about the American economy. You must know that confidence in the economy is very important. When confidence in certain economies is large, this triggers a chain reaction. It is likely that investments in that economy will grow as a result. Naturally, money is needed for these investments. Dollars for America and euros for Europe.Prediction: falling rate
To make a long story short: following the above message, the demand for dollars is expected to increase. The consequence of a growing demand is, logically, a rising price. In other words: the forecast was on June 5; the value of the dollar will increase.
Forex is investing on exchange rates. The value of one currency expressed in the other. To invest on the dollar, an exchange rate should be chosen in which the dollar is decided. The choice fell on the exchange rate EURO / DOLLAR (EUR / USD), because on this price a lot is traded. The price covers the value of the euro, expressed in dollars. When the dollar becomes more valuable, the price falls.The lever and short go: silently
At 17:17 on 5 June, a free trade program was opened to purchase a position on the EUR / USD exchange. Something has to be explained, namely the short investment method. When you go short, you make a profit when the price drops. As explained above, the EUR / USD price would decline according to the forecast. A position that depends on this price would therefore decrease in value. In short, there had to be short. In a few seconds, 80,000 euros were purchased, the position, with the aim that they would decrease in value.
Now you might think: wow, 80,000 euros! Is that just being used? Here too, a little explanation is needed. With forex you only put a small part of the position, in this case only 1 / 200th part. This makes forex powerful, because a small change makes a big difference. And investing with a small amount can soon! So in order to buy the position, only 400 euros was used in this case. In the investor world, this phenomenon is called the lever. Both short and leverage are silently processed in the free program. Together they make Forex great!The trade
Below you can see the graph belonging to the EUR / DOLLAR rate of 5 June. A clear falling course. Good news, because in the red area (start - to end time) the position dropped 100 euros in value. As previously noted, that loss is profit. And 100 euro profit on a deposit of 400 euros is not wrong. The position was closed at half past eight, three hours later. The profit is within.


In the figure below the result is in the screenshot from the program. Everything can be seen in this:

  1. The price on which you invested 
  2. The value of the position 
  3. The price EUR / USD 
  4. The duration of the investment 
  5. And of course the profit 
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