Currency Day Trading Examples

With the information we have covered so far, let's show a few examples of how much money can be made (or lost!) daily by trading currencies.

Example

trader thinks the euro will gain value versus the dollar (EUR/USD is at 1.2150)
Let's say that the price of the euro-dollar pair is 1.2150 and a day trader, based on his strategy, gets a signal that the euro is going to continue to go up.

The trader buys 100,000 EUR (1 lot) at 1.2155 (121,550 USD).

If the trader's margin requirement is 2%, his margin deposit would be 2,000 Euros or 2,431 dollars.

The trader automatically sets a stop loss of 25 pips based on his technical trading strategy. As the trader expected, the EUR/USD goes up to 1.2225 (on paper, everything works!).

Assuming this meets the profit requirements of his day trading system, the trader sells the 100,000 Euros.