Profitability, as its name suggests, is a measure of profit a business generates. So Profitability ratios are basically a financial tool that helps us measure a business’s ability to create earnings, given the level of expenses they are incurring. These ratios consider various elements of the ...
Pip is the smallest change that an exchange rate of a currency pair can make and is usually the last decimal place of a quotation. Learn more about What is Pip and How to Calculate Pip Value.
Figuring Profit or Loss If you are the seller of a futures contract,the buyer must pay you the stated price to settle the transaction.If the price drops before the delivery date, you can buy the coffee for less than the buyer must pay. Suppose the coffee futures contract discussed above d...
Brokers not charging a commission also offer wider spreads to cover their operation costs and profit margins. What does 0.3 Spread Mean? A 0.3 spread in Forex means that the difference between a currency pair’s bid price and ask price, measured in pips, is 0.3. This is the cost that a...
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SEE ALSO:Learn how Greg scalps in Forex (full interview) It doesn't matter if the risk number comes out positive or negative. Take the absolute value (ABS) of the entry price minus the stop loss price. Let's take a look at a few examples from different markets. In each example, the...
Profit stability is also quite important. The more consistent a company’s earnings, especially whenadjusted for cyclicality, the lower the interest coverage ratio can get without concerning investors. Certain companies can appear to have a high-interest coverage ratio because of what's known as a...
To calculate your position equity, you should add up all the shares you hold in a particular stock or how many contracts you own in the futures market. You can also calculate your position equity within the forex market. Second, determine the current market value of each share or the differ...
When you go to the bank to convert your money to another currency, you most likely won’t get the market price that traders get on the forex. The bank orcurrency exchangehouse willmarkupthe price so they make a profit. Credit cards and payment service providers such asPayPalalso do this ...