What will I learn? Examine how the Forex market works and how economic factors, commodities, and interest rates move currency values. Analyze Forex pairs, indexes and commodities to capitalize on trading opportunities. Build strategies to take advantage of long and short-term Forex trades. Take advantage of the Forex’s low commissions and fees and how to open and close trades in minutes. You can also calculate your unrealized profits and losses on open positions. Just substitute the current bid or ask rate for the action you will take when closing out the position. For example, if you bought 100,000 Euros at 1.2178 and the current bid rate is 1.2173, you have an unrealized loss of $50. ($1.2173 – $1.2178) X 100,000 = –$50 A return can be expressed nominally as the change in dollar value of an investment over time. A return can also be expressed as a percentage derived from the ratio of profit to investment. Formula for Rate of Return. The standard formula for calculating ROR is as follows: Keep in mind that any gains made during the holding period of the investment should be included in the formula. For example, if a share costs $10 and its current price is $15 with a dividend of $1 paid during the period, the dividend should be included in the ROR formula. Exchange rate of EUR/USD is 1.2238, which means that you will have to spend about $1.22 to buy €1. Exchange rate for GBP/EUR is 1.1910, which means that you can buy £1 for about €1.19; Exchange rate for GBP/USD is 1.4650, which means that for £1, you can buy about $1.47.
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Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. While there are many ways to measure investment performance, few metrics are more popular and meaningful than return on investment (ROI) and internal rate of... This Video explains the Concept of Spot and Forward rate, Calculation of forward Premium and Discount in foreign Exchange Management in Financial Management.... Internal Rate of Return (IRR) and the Modified Internal Rate of Return (MIRR) Exercises - Duration: 14:48. Learn Finance 1,663 views. 14:48. In this video, we look at the concept of IRR (Internal Rate of Return), how it works and it's relationship with NPV (Net Present Value). To find out more abo...