Forex newbie question (on IB platform)

[Option Trader]

I have not really traded Forex before:
What does trading $25,000 USD/JPY at a one cent profit (e.g. 117.500 to 117.510 mean after commissions with IB? (It's after hours, so I can't tell).

 

[Option Trader]

Can anyone help me?

 

[Option Trader]

Thanks.

 

[walterjennings]

commission is calculated after the trade. they are not combined into the prices.

 

[Option Trader]

Got ya'.

 

[late apex]

Better make that RT:

You mean 1 pip profit.

Gross P&L = +$2.12
Comm. = -$5.00 (-$2.50x2)
Net P&L = -$2.88

 

[notouch]

If you've not traded forex before I definitely wouldn't start with IB.