Is there any relationship between profit and capital?
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  • #1 Collapse

    Is there any relationship between profit and capital?
    Is there any relationship in profit that is gained by the Forex trading account and capital of that particular account?
  • <a href="https://www.instaforex.org/ru/?x=ruforum">InstaForex</a>
  • #2 Collapse

    For any profits to be realized by any Forex trader, there has to be capital invested not unless you are demo trading where the money used usually is virtual but if you are trading in the real account, the money invested is the capital used to trade from which profits or losses are achieved depending with the level of trading skills that one has. The more that is invested the higher the profits expected and vise versa.

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    • #3 Collapse

      Yes there is relationship between capital and profit makes in forex trade, in normal business you set aside your capital before going into any businesses, and your capital can be inform of the land you purchase for the business or the interment you need for the business or it can be the rew material you need for your production before turn it to finish goods, and after that you sell it out and make money, you remove your capital for the sales you make the remain balance is your profit, so in forex trade you credit your forex trade account that is your capital and you start using the money to trade and you make additional money to the money you have in your account, the additional money is your profit, the relationship is that without capital you can't make profit wither your capital it in form of bonus, you need capital first before starting to trade in forex.

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      • <a href="https://www.instaforex.org/ru/?x=ruforum">InstaForex</a>
      • #4 Collapse

        yes why not there are blooded relationship between the profit and capital because the capital is needed for profit and if you do not have capital than you cannot make the profit.Capital is basis of profit and In the trading capital is main item while used to trading and the equity is moving every time and ups and down of market will effect on trading capital and if you got the equity up side the capital than you will said that you got profit formula of making profit is capital based is

        Capital is equal to equity + profit

        that is why capital is most important than profit if you have capital than you will make it profit otherwise you do not make profit according to my point of view.

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