Profit & Loss Calculator Tool: Understanding your potential gains and losses is key to successful trading. That’s why we have an intuitive Profit & Loss Calculator tool to help you calculate the possible outcomes of your trades. Whether you’re trading forex, commodities, or indices, this tool allows you to estimate your potential profits and losses before entering a position.
By simply entering your trade details, you can instantly see the potential impact on your account, enabling you to manage your risk more effectively and make informed trading decisions. Don’t leave your trading success to chance—use our Profit & Loss Calculator today and take control of your financial future!
Forex Profit & Loss Formula
Profit/Loss = (Closing Price − Opening Price) × Lot Size × Pip Value
Example 1: Buy Trade (Long Position)
- You buy EUR/USD at 1.1000 and sell at 1.1050.
- Pip movement = 1.1050 – 1.1000 = 50 pips
- Lot size = 1 standard lot (100,000 units)
- Pip value (for 1 standard lot in EUR/USD) = $10 per pip
Profit = 50 × 100,000 × 0.0001 | = 50 × 10 = $500
Example 2: Sell Trade (Short Position)
- You sell GBP/JPY at 150.00 and close at 149.50.
- Pip movement = 150.00 – 149.50 = 50 pips
- Lot size = 1 mini lot (10,000 units)
- Pip value = $1 per pip
Profit = 50 × 1 = $50
Key Takeaways
✅ Profit & Loss = (Closing Price – Opening Price) × Lot Size × Pip Value
✅ Larger lot sizes = Higher potential profit/loss
✅ Leverage increases both gains and risks
✅ Always account for spreads in your calculation