to BUY or 'go long' A100,000 @.7504 (the offer price). That is, your position will increase in value if the relative strength of the first currency against the second currency increases, as you can now sell the first currency back for a greater amount. The key principle of forex trading is simple. Whether you are spread betting or CFD trading, you will need to put down a margin deposit to open your position. I'll give you more specific examples later in this chapter. To close your position, you decide to sell A100,000 @.7590 (the bid price). Since this was the amount you were wiling to risk, you close your account, transfer the remaining 4,000 back in to your checking account and that's it for you. You will pay GBP0.6536 for each USD.
Withdrawals can be submitted through My Account and are processed in the order funds were received. Your broker is always asking your for a "margin and you need to fund your account with that margin requirement your risk. What does 1:20 margin mean? If the current rate.305 you will receive 100,000/1.305 76,628 Euros. For instance, if you had bought GBP 10,000 in mid-January 2017 it would have cost you around USD 12,100 at the prevailing GBP/USD exchange rate. Getting great leverage on your position can help maximise the return on your spread bet or CFD investment, making it a critical element of the trade. Then choose USD as the settlement currency from the drop down menu.
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Unfortunately the trade you just placed is a loser, and you lose the whole 1,000. It means that with your 5,000 you will control a capital of 100,000. That means that you are betting that USD will depreciate against Euro. We can typically verify your identity instantly. Profit/loss Calculation: Size of trade x (sell price - buy price) profit loss USD 100,000 x (0.7590 -.7504) US860 profit. The bid rate.7500 is the rate at which you can Sell AUD to buy USD. For example if the AUD/USD rate moves from.7504.7505 you will receive a profit of US10. How do I fund my account? The USD 10,000 is posted on margin as a guarantee for the future performance of your position. If you want to sell GBP 10,000, click on the bid and enter 10,000 as the quantity of GBP that you wish to sell.
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