# How to use a profit calculator

1. Pick the currency pair you wish to trade
2. Choose if you are selling or buying
3. Set the open and close price
4. Select in which currency you would like to see the results
5. Type the number of units in the trade (position size).
6. Click on the Calculate button.
The profit/loss is shown below this button (a negative value indicates a loss).
7. To compare new values, just change them and use the Calculate button again to see the results.

# Calculating Profit and Loss

To clearly understand how the profit and loss calculation is arrived at, we shall consider some examples on how to calculate profit or loss with a formula.

The following two examples illustrate how to calculate profit or loss after taking a trade.

1st example:

Buying \$10,000 each at 1.2340 you will pay (10,000 x 1.2340) = 12340 CAD.

Selling \$10,000 at 1.2515, you will receive (10000 x 1.2515) = 12515CAD

Net profit = (12515 – 12340)

Profit = 175/1.2515

=\$139.8

2nd example:

Now from the example above, let’s say we decide to sell USD/CAD and trade at the same price1.2338/1.2340. To sell \$10,000 you pay 12338CAD (10,000 x 1.2338).

However, USD strengthens after taking a trade and closed with your stop loss to1.2515/1.2517. This means your minimum loss attained after selling \$10,000 at 1.2517 and received 12517 CAD.

#### Total Loss = (179) CAD

To convert it to dollar, we simply multiply by the current rate, USD/CAD rate, 1.2517

179/1.2517

= Total loss in dollars = (\$143)

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