Profit/Loss

Profit/Loss

Before you start trading FX, it is vital to understand how to calculate the outcome or profits/ losses. You can access forex calculators online and on several FX broker websites to quickly compute profits/losses before placing a trade or on your existing positions.

Here’s how you can calculate them manually-

P/L DIRECT CURRENCIES = (selling price- buying price) x contract size

P/L DIRECT CURRENCIES = (selling price- buying price) x tick value*

* tick value = lot size x tick size/current price

P/L CROSS CURRENCIES = P/L = (selling price- buying price) x tick value*

* tick value = lot size x tick size x base quote/current price