speculators decided to long one lot of EUR/USD in CFDs trading through the OANDA broker due to the expectation that the Euro' value will appreciate against the Dollar's value. At that time, the bid and ask rate was 1.09793 and 1.09806 respectively. Assuming speculators have a $15,000 balance in my account.

Information

Currency pair: EUR/USD

Long or Short: Long 1 lot of EUR/USD in CFDs

Open price (ask): 1.09806

Trade size: 100,000

Leverage: 10:1

a) Calculate margin requirement and margin call

b) Calculate payoff of the speculation

Days	Price (Bid/Ask)	Pips movement	Pips price	Balance	Margin Call	Accumulated Profit or loss
0	1.09793 and 1.09806
1	1.09800 and 1.09811
2	1.09804 and 1.09817
3	1.09801and 1.09812
4	1.09803 and 1.09813
5	1.09806 and 1.09817

c) Calculate the payoff by using the table above with leverage of 1:1 and 50:1.

Answer rating: 100% (QA)

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