How do I calculate the value of a point in Forex?
The value of the point is calculated on the basis of the size of the contract or the lot you will enter it and this is the title of the 27th lesson in the course of teaching Forex on the site of Forex Cochach only type in Google Forex site to enter the site of the site and follow new lessons daily
To clarify more
Why you should use the leverage in the Forex market and foreign currencies to achieve large profits from the change in the lowest value or change in the lowest number of points
For example
If the euro price is so dollar
EUR / USD = .9820
Then the price changed and became
EUR / USD = .9821
Here, if we do not use the leverage, we will find that the price has changed one point
From 0.9820 to 0.9821
That is to say that you have purchased 1000 Euros and will pay only $ 982
And held the price increased to a point and became 0.9821
So now the value of the 1000 euro zat point has become
982.10 which increased 10 cents
So very little profit with a single point increase
But with leverage, you will trade $ 100,000 if you use a 1: 100 leverage
You will only pay $ 1000
When you change one point you will be earning $ 10
And not 10 cents because the capital is large and this is trading using leverage in the Forex market
So the rule says
The value of the point is the size of the lot you trade or the size of the contract you are trading in
In the previous example, if you trade 1 lot, the value is $ 100,000
The point value is $ 10
The price rose 50 points will win
50 points * $ 10 = $ 500 This is a very good profit
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