Suppose you anticipate that the USD / JPY rate is likely to rise and you open a USD / JPY buy position at 1 USD = 100 JPY .
Since the US dollar / yen has risen as expected, let's assume that you settled by selling when 1 US dollar = 110 yen . This completes the transaction, and the difference between the price range you built (bought) and the price range you settled (sold) is determined as the price range you have acquired in the trade.
In other words, in this case, the difference between the bought rate of 100 yen and the sold rate of 110 yen, which is 10 yen, is the range of profits earned from the transaction.
This 10 yen range is the profit per US dollar, and the final profit and loss depends on the transaction volume.
In Forex, the amount of positions opened in one transaction is mainly 1000 currencies or 10,000 currency units, so if you trade in 1000 currencies, you will get a profit of 10,000 yen, and if you trade in 10,000 currencies, you will get a profit of 100,000 yen. about it.
[Profit and loss calculation method = Profit per currency ✕ Transaction volume]
・ For 1000 currency transactions … 10 yen x 1000 currencies = 10,000 yen
・ For 10,000 currency transactions … 10 yen x 10,000 currencies = 100,000 yen
