Assume that an investor opens a forex account by depositing $50,000.

1 LOT = 100,000 units = 100,000 USD = 180,000 TRY position size. (When the exchange rate is 1.80, the investor buys 100,000 USD and sells 180,000 TRY.)

For this transaction, 10% of the position size will be used as margin from the account balance.

Initial Margin = $100,000 / 10 (Leverage Ratio) = $10,000
(An amount of $10,000 will be reserved from the account as margin to open the position.)

In summary, the investor has opened a position of 180,000 TRY with $10,000 margin (10:1 leverage) and will earn a profit of 5,000 TRY when closing the position at 1.8500.

The difference in position value is 185,000 TRY – 180,000 TRY = 5,000 TRY, corresponding to a $2,702 profit reflected in the investor’s account.
(If the trading platform is funded in USD, all profit and loss calculations are automatically made in USD by the system.)

If the same investor had traded 0.10 LOT, the following situation would occur:

0.10 LOT = 10,000 USD = 18,000 TRY position size. (When the exchange rate is 1.80, the investor buys 10,000 USD and sells 18,000 TRY.)

In this case, the Initial Margin would be $10,000 / 10 = $1,000.

When the position is closed at 1.8500,
0.10 LOT = 10,000 USD = 18,500 TRY position size.

The difference in position value is 18,500 TRY – 18,000 TRY = 500 TRY, corresponding to a $270.2 profit reflected in the investor’s account.
(If the trading platform is funded in USD, all profit and loss calculations are automatically made in USD by the system.)