ASSIGNMENT

DIFF BTWi RAW ACC AND STANDARD ACC

Generally, account types differ mainly in how costs are charged

.A standard account is one that usually has no separate commission and builds cost in a wide spread.

A raw account on the other hand , shows tighter spreads but adds a per lot commission, so the difference depends on the total cost for the instrument and the trading frequency.

CALCULATING PROFIT

Most new traders find it difficult to calculate expected profit from a trade even having set all modalities in place. Lets deal with that.

Take for example:

* If EUR/USD moves 50 pips on a 0.09 lot size, how much will you make?

SOLUTION

Imagine you are trading in naira

$0.1=NGN133=1 pip at 0.01 lot size

At 0.09 lot size, 1 pip = 9x133=NGN1197

So, amount earned will be 50 pips x NGN1197=NGN 59,850.00.

With this knowledge, you could always know what to expect.