> For the complete documentation index, see [llms.txt](https://magnamarkets.gitbook.io/en/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://magnamarkets.gitbook.io/en/foreign-currency/transaction-rules.md).

# Transaction Rules

## ***How To Trade Forex Profitably?***

How to trade Forex profitably? Forex is a two-way trade, you can buy (long) and sell (short). Simply put, if you think the exchange rate will rise, you buy; if you think it will fall, you sell. If the direction is correct, you earn the spread in between.

## ***Profit Calculation Rule***

Total profit/loss = (Ask price - Bid price) x contract units x number of lots traded (+/-) Overnight interest Note: No overnight interest is required for closing a position on the same day it is opened; the actual overnight interest is subject to the platform display.

*Transaction Case One* 

Buy 1 lot of AUD/USD through the platform with 100,000 contract units per lot at a bid price of 0.67164 and close the position at the ask price of 0.68164 on the same day.

Total P/L = (Ask - Bid) x Contract Units x Number of lots traded ± Overnight Interest = (0.68164 - 0.67164) x 100,000 x 1 ± 0 = $1000

*Transaction Case Two* 

Sell 1 lot of EUR/USD through the platform with 100,000 contract units per lot at the ask price of 1.06000 and close the position at the bid price of 1.05000 on the same day. 

Total P/L = (Ask price - Bid price) x contract units x number of lots traded ± overnight interest = (1.06000 - 1.05000) x 100000 x 1±0 = $1000

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th></th><th data-hidden data-card-cover data-type="files"></th></tr></thead><tbody><tr><td><p>                                 0.03<br>        <br>          Transaction speed 0.03 seconds</p><p></p><p> </p><p>                     <a href="https://www.magnamarkets.com/en-US/home">Click To Experience</a></p></td><td></td><td><a href="/files/cHFSwDAopqRC7zbhTnWn">/files/cHFSwDAopqRC7zbhTnWn</a></td></tr><tr><td>                                  0.25</td><td><p>                 </p><p>                 Gold spread is only 0.25</p><p></p><p> </p><p>                     <a href="https://www.magnamarkets.com/en-US/home">Click To Experience</a></p><p> </p><p>        </p></td><td><a href="/files/NfRgG9DLB4kEtmiE4bxX">/files/NfRgG9DLB4kEtmiE4bxX</a></td></tr><tr><td><p>                                24H</p><p>        </p><p>           24/7 Deposit and Withdrawal</p><p> </p><p> </p><p>                  <a href="https://www.magnamarkets.com/en-US/home">Click To Experience</a></p></td><td></td><td><a href="/files/9a4VjhW0EmwTndPSzvsz">/files/9a4VjhW0EmwTndPSzvsz</a></td></tr><tr><td>                                  365</td><td><p></p><p>                              24/7 Open</p><p> </p><p> </p><p>                        <a href="https://www.magnamarkets.com/en-US/home">Click To Experience</a></p></td><td><a href="/files/17OnSybkEtCW7pdQmZi1">/files/17OnSybkEtCW7pdQmZi1</a></td></tr></tbody></table>