How to Calculate Profit and Loss in Forex?
How to Calculate Profit and Loss in Forex?
The
best approach is to use the value per pip model. The calculation relies on the
quote currency. As previously highlighted (see here), the quote currency takes
the second position in a currency pair. Depending on the pair, you can
calculate the pip value to the second or the fourth decimal.
The formula for Forex Profit Calculation
Profit
OR Loss Per Pip= Trade Volume X Pip Size
For
instance, if the trade volume is 100,000 and a lot size of 2, the Profit or
loss will be $20.
See
a Free Tool for Automatic Calculation of Profit and Loss in Forex Trading.
You can also calculate your Margin Requirements Below
Analytic Dave
AnalyticalDave is a personal financial analysis portfolio that captures my Derivatives trading, stock, and investing journey. My portfolio does NOT act as a financial advisor to any community. It is only purposed for journaling my story as a self-taught trader and investor.
