Preschool question

Beginner Questions
1

Hi. I need help to understand something in this lesson “Trading Scenario: What Happens If You Trade With Just $100?”. The first example is I want to go short EUR/USD at 1.20000 with 5 micro lots (position) and after the example says EUR/USD rises 80 pips, that is 1.2080. What i don’t understand is the calculation of equity, because the example says that equity:60 , the calculation that it’s explained is
Floating p/l: (1.2080-1.2000)*10000 * 0.50 = $40
Equity: 100 + (-40) = $60
My calculation is:
Equity: balance + Floating P/L= $100 + 40= $140, Because it’s possitive, it’s not a loss.

Thanks

2

Hi @rosxaly, its because youre looking at the type of trade wrong. The example is talking about SHORTING your trade; a situation where you’d be selling rather than buying. Therefore, if you were to see the price rise 80 pips, the market is moving against you. This is why you would have $60 left over after the trade.

You are looking at the example as a buy order. If the price rises on a buy order, you would indeed see your equity increase to $140.

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3

Thanks @Quizzkidd09, you are right. I was looking at the type of trade wrong

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4

Maybe you should think about bigger capital?
Or was it a theoretical question?