**USD Is the Quote Currency (Loss)**

This time with the

**GBP/USD currency pair.**

In this instance, we initiated a

**30,000-unit short (sell)**trade in the

GBP/USD pair at 1.8863 and, sadly, it advanced against our hopes.

We exited at 1.8883,

*losing 20 pips.*

**Since the quote currency**

**(the second currency) is USD, we know the conversion rate is 1.**

Thus using the profit formula

**Profit in USD = Price Change x Units Traded**

we find that our profit is actually a loss:

-$60.00 =-0.0020 x 30000

If the above calculations are still causing some confusion,

then reread, “The FOREX Lexicon.” As promised

before,

**these calculations only require**

**the four simple arithmetic functions:**

**addition, subtraction, multiplication, and division.**

No exponents, logs, or trig functions.

But this information must be completely clear before proceeding.

Keep in mind that it is your money at stake.

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