Forex profitability map.

The main question that interests every newcomer to Forex is how much money they can make.

Numerous articles have been written on this topic, providing theoretical calculations of probable earnings based on the author's own assumptions.

As with everything, theory doesn't always correspond to reality, so if you really want to know how much you can earn on Forex, use a profitability chart.

It shows the probable monthly profit for the most attractive currency pairs.

You can choose the month for which statistics will be displayed; only the basic conditions remain unchanged.

The initial data shown in the diagram:

• Currency pair – there are five of them: EURUSD, GBPAUD, EURZAR, USDZAR, GBPZAR
• The deposit amount used for trading was $1,000.
• Leverage size – 1:500
• The volume of the transaction for each currency pair.
• The direction of the transaction - to buy or to sell.
• Profit is the amount that could have been made if you had opened a position.

FreshForex broker website . The tool is truly informative and consists of a small diagram:

The potential profit potential is truly impressive. If you opened a buy trade on the GBP/ZAR currency pair at the beginning of February, you could have earned $34,300 by the end of it with a deposit of just $1,000.

The statistics for other currency pairs are no less impressive:

EURUSD – $2,988
, GBPAUD – $18,315,
EURZAR – $25,829
, USDZAR – $29,006.

How accurate is the yield map?

The 1:500 leverage used in the calculations is a bit confusing, so I'd like to confirm the validity of the results.

Using the initial data, a $1,000 deposit, we can estimate how realistic it is to achieve the profit indicated in the chart. More specifically, we'll need to consider whether the deposit will withstand a correction, as the price won't always follow the trend.

The EURUSD currency pair has a trade volume of 4.39 lots, suggesting a spread of $20 to $50, depending on the broker and market conditions.

At the same time, 1 pip of price movement will be worth $43.9 with a four-digit quote, meaning the deposit will withstand a price correction against the main trend of no more than (1000 - 50) / 43.9 = 21.64 pips.

This means the trade is quite feasible if the price doesn't move against the position by more than 21 pips, but the risk is still enormous.

It is recommended to reduce the volume by 10 times and use a leverage of 1:50, then you will be able to survive any correction.

As a result, even though your income may decrease tenfold, it will still remain impressive; even $3,430 from a $1,000 deposit is still quite significant.

The profitability map will allow you to choose the most profitable forex trading instrument based on past months' statistics. Statistics for other markets are also available.

The map itself -

https://freshforex.org/traders/volatile-contracts-forex/ At the same time, do not forget to make your own adjustments to the size of the leverage , making your trading more secure.