Profit calculator

How profit and loss is calculated

For a long position the profit is the exit price minus the entry price; for a short it is the entry minus the exit. That difference, multiplied by the contract size and the number of lots, is the profit in the quote currency, and the calculator converts it into your account currency at the exit price where the quote currency is the account currency's counterpart, or at the reference rate otherwise. The pip figure is the same difference divided by the pip size.

Buying one lot of EUR/USD at 1.1600 and selling at 1.1650 is a 50 pip gain: 0.0050 times 100,000 is 500 dollars. Selling one lot of USD/JPY at 157.50 and buying it back at 156.90 is 60 pips, or 60,000 yen, which the calculator converts to your account currency at the exit price.

What is left out

Two costs are not in the price difference. The spread is paid on entry, because you buy at the ask and sell at the bid, so a quoted entry price already includes it if you use the prices you actually dealt at. Swap is charged for every night the position was held and is worked out on the swap calculator. Commission, where the account charges it, can be typed in per lot and is deducted in the net line.

The return on notional line divides the profit by the full value of the position rather than by the margin, because the margin depends on leverage and a return on margin flatters a leveraged trade. It is the figure to compare with a move in the underlying price.