When we observe the movement in the EURUSD Forex pair; Let's try by opening a short trade :
Current Leverage : 100x
Position Size : %3 - %3.5
Stop-Loss : 1.09425
Take Profit Level : 1.06692
Trade active
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Leverage has been changed to 33x.
Trade closed: target reached
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We achieved a net gain : %1.53 Our new capital (%100) : 101.53
Comment
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A small mathematical error has been made here. However, when we look at large percentage short position gains or in total, it can cause huge calculation errors. Short position profit is calculated as follows: Profit Percent = pp Short Position Profit = ((100 / (100 - pp )) - 1 ) * 100 Short Position Profit = ((100/98.47) - 1 ) * 100 Short Position Profit = (0.0155) * 100 = 1.55 (percent) Total Profit = (Lev * Short Position Profit * Position Size) / 100 = = (33 * 1.55 * 3) / 100 = 1.5345 Our new capital = 100 + 1.5345 = 101.534