Forex Examples | GKFX
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Trading & Products

Forex

Learn about the basics and history of the biggest financial market in the world.

Forex Example

We will use the Euro versus the US Dollar, EURUSDSB, as an example of how to trade FX on a Spread Betting Account .

First determine the standard lot size for EURUSDSB. If you do not know what the standard lot size is you can look it up on our Market Information Sheets.

The standard lot size for EURUSDSB on a Spread Betting account is £1 per pip.
 
In FX a pip is a unit used to measure a movement in price. One pip of EURUSDSB is 0.0001.
 
With GKFX you can trade from as little as 10 pence per pip on our Spread Betting accounts. To trade 10 pence per pip enter 0.10 as your lot size. This is 0.10 x the standard lot size of £1 per pip, which is £0.10, or 10 pence per pip.
 
If you bought EURUSDSB with a lot size of 0.10 you would have made £0.10 for every pip the price of EURUSD went up.
 
If you sold EURUSDSB with a lot size of 0.10 you would have made £0.10 for every pip the price of EURUSD went down.
 
If you bought EURUSDSB at 1.3000 and the price moved up 5 pips to 1.3005 you would have made a profit of 50 pence because £0.10 per pip x 5 pips = £0.50, or 50 pence.
 
If you sold EURUSDSB at 1.3000 and the price moved down 5 pips to 1.2995 you would have made a profit of 50 pence because £0.10 per pip x 5 pips = £0.50, or 50 pence.
 
Alternatively if the prices in the examples moved in the opposite directions you would have lost the amounts stated.
 
On Spread Betting accounts your profit will always be in GBP.

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