if you have $1,000 in EUR/USD and gain 100 pips, what would your ROI be?

[GammaJammer]

don't you notice he is talking about USD/EUR

Sell USD 1000 at 1.4510 = eur 1000/1.4510 = eur 689.18

Convert back those euros at closing rate 1.4610 = usd 689.18 * 1.4610 = $1006.89

P+L = 1,006.89 - 1,000.00 = $6.89

Assuming zero leverage ROI = 6.89/1000 = 0.689%

 

[GammaJammer]

Hence my assertion that he wants spoonfeeding - not a complicated calculation. No advanced maths required.

 

[RichLady]

He's probably only 12.

 

[Technically Fundamental]

Thats not advanced?

 

[theSheik]

He's probably only 12.

more like he probably works for an SB...

...and is only 12...

 

[Igat]

Thats not advanced?

Not really. Its basic stuff really and even if you didn't have the formula to hand most people should be able to convert currencies from one to another if they know the rate. In this case its converting one to another at one rate then converting it back at the new rate.

On the subject of maths I talking to one of my kids teachers about claims made on Consumer Credit Act. (BTW I have a reasonable size stake in a business that tackles debt using the "loophole" in the 1974 CCA so its why I know the area well). I was telling him that he should check that the repayments on his loan were correct. It turned out they were paying 5% too much a month on the loan as the loan company had miscalculated the interest. What shocked me was this teacher did not know how to calculate the repayment and didn't know that there is a simple method in excel to check their loan and check the banks figures. The teacher told me that this isn't taught in schools needless to say I was angry as I know the vast majority of students leaving school this year and learned algebra will never in there lives use it but I will guarantee that the vast majority will receive a loan at some point in their lives. Anyway rant over and for the benefit of those on the forum whom didn't learn this in school, here is how its done go check your loans.

=pmt(rate, nper, pv)

rate = your simple annual interest rate / 12.
nper = the number of months the loan is for.
PV = the amount loaned.

 

[GammaJammer]

You're ranting about a teacher not teaching kids a basic financial calculation and yet all you do is post an EXCEL formula for it? Where's the education dude?

 

[Igat]

You're ranting about a teacher not teaching kids a basic financial calculation and yet all you do is post an EXCEL formula for it? Where's the education dude?

lol yeah shot myself there.