You can also set different bid and ask prices and compare the results on the forex profit calculator.

What you should look at to calculate the profit /loss on a trade

## How to use a forex profit calculator

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

#### How to Calculate Profit and Loss using a formula

To clearly understand the profit and loss calculation, 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 on how to calculate profit or loss

If the current bid/ask for USD/CAD is 1.2338/1.2340, and you want to buy 10,000 Euros at 1.2340.

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

After taking a trade and price rises to 1.2515/1.2517.

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

Net profit = (12515 – 12340)

Profit = 175/1.2515

=\$139.8

###### 2nd example on how to calculate profit or loss

Now from the example above, let’s say we decide to sell USD/CAD and trade at the same price 1.2338/1.2340.

To sell \$10,000 you pay 12338 CAD (10,000 x 1.2338).

However, if USD strengthens after taking a trade and closes with your stop loss to 1.2515/1.2517.

The difference is (12338 – 12517) = -179 CAD

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

179/1.2517

= Total loss in dollars = (\$143)

Home Forums Tools Topics

Viewing 18 topics - 1 through 18 (of 18 total)
• Topic
• Voices
• Posts
• Last Post
• What are the best indicators of trend direction?

Started by: yalla

• 2
• 6
• 2 years ago
Viewing 18 topics - 1 through 18 (of 18 total)

#### Like our page 