Example - Spot FX

A Foreign exchange quote , e.g. EUR/USD "1.4000 /03" represents the bid / offer spread in this case for EUR / USD. The rate of 1.4003 is the rate at which you can Buy Euro against the US Dollar. The rate of 1.4000 is the rate at which you can Sell Euro against the US Dollar.

Opening Trade
Price Shown	1.4000 (Bid) / 03 (Offer)
Sell Price	1.4000
Quantity Size	100,000
Margin Required (1%)	100,000 x 1.4000 x 1% = $1,400
Commission	$20.00

The Euro depreciates against the US Dollar and the client wishes to close the position. Market is now quoting 1.3947 / 1.3950.

Opening Trade
Price Shown	1.3947 (Bid) / 1.3950 (Offer)
Buy Price	1.3950
Price/Point Movement	50 points
Gross Profit/Loss	50 x $10 = $500 profit
Net Profit/Loss	$500 - (Commission $20) = $480