Forex Trading Problems: What Must You Do To Make It Square?

FXCM Inc. of Australia is a leading provider of Forex (Foreign Exchange) trading; it has headquartered in Sydney with many expert professionals who offer excellent customer service and care 365 days a year. It is regulated in Australia and some other jurisdictions globally. FXCM offers fast and reliable execution on award-winning MT4 platform along with other specialty platforms. Whether you are a newbie to online Forex trading or have sufficient experience in investing, FXCM has customizable account types and wide range of services for all levels of traders.

FXCM Inc. ; the dealer of Forex trading, has the following dealing position in Frankfurt. What must it do to make it square in foreign exchange trading?

The account of FXCM Inc. in Frankfurt is overdrawn EUR 3,75,000. It has purchased cheques which are in course of post dated and not yet credited to its account totaling EUR 3,28,000. It has forward contracts outstanding as follows:

Sales                      EUR 1,63,86,000

Purchases           EUR 1,46,06,250

It has issued Demand Drafts which are not yet presented for the payments for EUR 12,20,080 in addition to some long-term bill purchased in hand (but not due) for EUR 28,85,640. What should FXCM Inc. do to make it square in Forex Trading?

Solution to Forex Trading Problems:

Particulars Purchases Sales
   EUR    EUR
Overdrawn Forex Balance                375,000
Cheques Purchased                328,000
Sales          16,386,000
Puchases          14,606,250
Demand Draft Issued            1,220,080
Long-Term Bills Purchased            2,885,640
Total          17,819,890          17,981,080
Balance Overdrawn                161,190
Total          17,981,080          17,981,080

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