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
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