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Forex Math Rules

  • #21
  • May 14, 2017 10:59am May 14, 2017 10:59am
Quoting Crackpot
OMG.
OMG. Oregon Medical Group ???
Forex Philosopher
  • #22
  • May 14, 2017 11:02am May 14, 2017 11:02am
Q2) Challenging Question
Why the loss of GBPCAD below is exactly 2.96 USD??
ANYBODY ANSWER???
Attached Image (click to enlarge)
Click to Enlarge Name: 919.png Size: 41 KB
Forex Philosopher
  • #23
  • May 14, 2017 11:46am May 14, 2017 11:46am
I try

P&L= 10*0,02*(1÷1,3711)*((-1)*20,3)
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
  • #24
  • May 15, 2017 1:03am May 15, 2017 1:03am
Quoting michisuperfr
I try P&L= 10*0,02*(11,3711)*((-1)*20,3)
Correct answer
Forex Philosopher
  • #25
  • Edited 2:18am May 15, 2017 1:08am | Edited 2:18am
Q3) Challenging Question
Why the P/L of EURJPY below is exactly 15,334.99 USD??
Attached Image (click to enlarge)
Click to Enlarge Name: 919.png Size: 27 KB
Forex Philosopher
  • #26
  • May 15, 2017 2:18am May 15, 2017 2:18am
Q4) Why margin below is exactly 2,691.49 USD??
Leverage is 100:1 for both pairs
Attached Image (click to enlarge)
Click to Enlarge Name: 919.png Size: 19 KB
Forex Philosopher
  • #27
  • May 15, 2017 2:22am May 15, 2017 2:22am
Q4-ANS)
Refer to post#4
M=C1*Lots1*YYYDD1+ C2*Lots2*YYYDD2

M=1000*1.23*EURUSD + 1000*1.23*EURUSD = 1000*1.23*1.09411+1000*1.23*1.09411=2691.49 USD
Forex Philosopher
  • #28
  • May 15, 2017 2:31am May 15, 2017 2:31am
Q5) Why margin below is exactly 2,703.03 USD??
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Forex Philosopher
  • #29
  • May 15, 2017 8:06am May 15, 2017 8:06am
Quoting Master-Mind
Q5) Why margin below is exactly 2,703.03 USD?? {image}
Attached Image
  • #30
  • Edited 2:17pm May 15, 2017 2:05pm | Edited 2:17pm
why 1.08949??? WITH THE SAME ENTRY TIME
===== Ans =====
Lev1 for euruaud 50:1
Lev2 for eurusd 100:1
C1=100,000/Lev1=2000
C2=100,000/Lev2=1000

M=C1*Lots1*YYYDDD1 + C2*Lots2*YYYDDD2 + C3*Lots3*YYYDDD3 + . . . ..

M=2000*1.23*EURUSD + 1000*0.01*EURUSD = 2000*1.23*1.09396+1000*0.01*1.09396= . . .
Forex Philosopher
  • #31
  • May 15, 2017 2:26pm May 15, 2017 2:26pm
Quoting Master-Mind
why 1.08949??? WITH THE SAME ENTRY TIME ===== Ans ===== Lev1 for euruaud 50:1 Lev2 for eurusd 100:1 C1=100,000/Lev1=2000 C2=100,000/Lev2=1000 M=C1*Lots1*YYYDDD1 + C2*Lots2*YYYDDD2 + C3*Lots3*YYYDDD3 + . . . .. M=2000*1.23*EURUSD + 1000*0.01*EURUSD = 2000*1.23*1.09396+1000*0.01*1.09396= . . .
How could I know, that leverage for EA and EU is different? Or why for one account leverage is different for 2 pairs?

That's why I supposed, that EA was opened with the price for EU different to one we can see in the screenshot, though it was very unlikely, that EU gained almost 45 pips in 8 seconds.
  • #32
  • May 18, 2017 10:38am May 18, 2017 10:38am
Quoting Botan626
{quote} How could I know, that leverage for EA and EU is different? Or why for one account leverage is different for 2 pairs? That's why I supposed, that EA was opened with the price for EU different to one we can see in the screenshot, though it was very unlikely, that EU gained almost 45 pips in 8 seconds.
My abologies
i forget to mention each pair leverage
Forex Philosopher
  • #33
  • May 18, 2017 11:21am May 18, 2017 11:21am
Quoting Master-Mind
{quote} My abologies i forget to mention each pair leverage
Why 2 currency pairs have different leverage for one account?
  • #34
  • May 18, 2017 1:20pm May 18, 2017 1:20pm
Quoting Botan626
{quote} Why 2 currency pairs have different leverage for one account?
ASK PROKERAGE
it is normal,
you may member franc crisis, and later Bound, etc ...

but with houseOFborse, EURAUD: 50:1,,,,,, EURUSD 100:1
Forex Philosopher
  • #35
  • Edited 5:16pm May 23, 2017 1:04pm | Edited 5:16pm
Quoting Master-Mind
((5)) After who many pips I will receive margin call?? what is the general rule regardless of my broker, regardless of leverage, regardless of stop-out level, regardless of pair name , etc . . ((Ans)) I = (B-S*C*L*YYYDDD)/(10*XXXDDD*L) I = Margin Pips B: Initial Balance S: your broker stop-out level (a constant value that u should new before you trade with this broker) C: your Terminal constant for each pair C=100,000/ Leverage YYYDDD: BaseCurrency YYY against your account DominatingCurrency DDD. (Margin Calc. see post# 2) XXXDDD: QouteCurrency...
I = (B-S*C*L*YYYDDD1)/(10*XXXDDD2*L)

it is the same as:

I = (10*R*B/L-SS*100*YYYDDD1)/(R*XXXDDD2)


SS=100*S
SS=100% --- S=1.00

R is Leverage.
Forex Philosopher
  • #36
  • May 23, 2017 5:08pm May 23, 2017 5:08pm
Q7) You are trading with a broker named "ActivTrades PLC" with Stop-Out Level 30% , Lverage 400:1,
your balance is 10,000 USD, Dominating Currency is USD.
if you take long position (buy) on pair EURUSD at 1.1270 with 7 Lots, at whcih price MarginCall would happen??


Ans:
XXXDDD2=USDUSD2=1

I =134.4 pips (prove it.)

that mean Margin happens @ 1.11355
Forex Philosopher
  • #37
  • May 28, 2017 2:25pm May 28, 2017 2:25pm
Next: Capital Management equations (Reward/Risk Calculations)
((1))
Definition: generally speaking, Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

in Forex: Financial Management means "How do you achieve the greatest possible return with the possible minimal risk in the shortest possible time"
Forex Philosopher
  • #38
  • May 28, 2017 6:58pm May 28, 2017 6:58pm
Quoting VEEFX
Fascinating Master-Mind. It boggles my mind when folks say we don't need math skills to trade lol Wondering if you could share formulas/calculations behind the "exposure" tab in MT4. It's key to account diversification in USD across 28 pairs.
without math, anybody will trade in the most stupidest way!!
regrading math behind "Exposure Tap" it is a very simple and straightforward,
i will answer your question later on
Forex Philosopher
  • #39
  • May 29, 2017 2:44pm May 29, 2017 2:44pm
Quoting Master-Mind
In Forex: Financial Management means "How do you achieve the greatest possible return with the possible minimal risk in the shortest possible time"
& Proceeding from this definition, Professional Traders could be formulated as:
Professional Trader is anyone whose trading progress could be presented as a soft increasing linear equation in the form y=ax+b,
where:
y is the new balance at the end of each period,
b is the staring balance,
a is the profit percentage accumulative multiplier,
x is the profit percentage,
Forex Philosopher
  • #40
  • May 29, 2017 8:03pm May 29, 2017 8:03pm
Quoting Master-Mind
{quote} & Proceeding from this definition, Professional Traders could be formulated as: Professional Trader is anyone whose trading progress could be presented as a soft increasing linear equation in the form y=ax+b, where: y is the new balance at the end of each period, b is the staring balance, a is the profit percentage accumulative multiplier, x is the profit percentage,
could you please explain "profit percentage accumulative multiplier" = ?
Staying in my lane...
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