Calculate forex profit and loss

SUMMARY

Calculation of profit and loss might be difficult when you are new to forex trading. However, once you start on a few trades, these calculations will come naturally to you. Great news - in MT4 platform, profit and losses are automatically calculated and converted back to your your base currency.


CALCULATE PROFIT AND LOSS IN DETAIL

Calculate profit and loss in pips

  • Profit and loss in Forex trading is expressed in term of pips. Example, I made 100 pips buying EURUSD or I made 80 pips shorting GBPJPY.
  • Calculation of profit/loss in pip (e.g. GBP/JPY short trade)
    • Pips won =

Selling price – Closing price =

187.36 – 181.68 = 568 pips


Calculate Forex Profit

  • Profit and loss (in money term) is always expressed in term of second currency
  • So on the trade of GBPJPY, you have made yourself some Japanese Yen.

  • Calculation of profit/loss in pip (e.g. EUR/GBP long trade)
    • Pips won =

Closing price - Buying price =

0.7412 – 0.7237 = 175 pips

  • On the trade of EURGBP, you have made yourself some GBP.
How to Calculate Forex Profit and Loss

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FOREX WINNING

TRADES & LOSING TRADES


"Live" actions and reviews from our students directly from our social media accounts. We don't tweet winning trades only. We tweet losing trades as well. It's just that we have more winners. Follow @terraseeds in twitter for live trades and forex ideas.



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