Forex Profit Calculator
Prices in the Forex market can move excessively rapidly, especially during the volatile periods. So, forex trade involves significant risk. Before entering a trade, it is essential for you to know what you stand to gain or lose from it. Forex Profit Calculator by Wibestbroker is a simple tool that will help you determine a trade’s outcome.
But it is also useful to know how this calculation is made to understand your profit or loss potential on each trade.
- Select the Currency Pair for the transaction;
- Select the Base Currency (the one that you purchase);
- Enter Selling or Opening Price;
- After that enter Buying or Close Price;
- Enter the transaction volume – trade size (the amount you are selling);
The below examples show how to calculate profit and loss on trades when taking a positions.
Suppose you decide to buy Euros at $1.1251 per euro and sell Euros at $ 1.1261 per euro. The transaction size is 100,000 Euros.
The same formula is used by the Calculator.
For our example, it would be like this:
($ 1.1261- $1.1251) X 100,000= $100
It comes out that from this transaction you would make a $100 profit.
Let us consider another example. Assume again the trade in EUR/USD when Euro is trading at $ 1.3646 per Euro. Transaction size is 100, 000 Euro.
But now the EUR decreases to $ 1.3616.
By the following formula we discussed earlier, you should be able to determine that you would see a $300 loss from this transaction:
($ 1.3616.- $1.3646) X 100,000= – $300
We can also determine the unrealized profits and losses on open positions. You just need to substitute the current bid or ask rate for the action you will take when closing out the trade position.
For instance, suppose you bought 100,000 euros at 1.1374 and the current bid rate is 1.1363, you have unrealized loss of $110
($1.1363 – $1.1374) X 100,000= -110$
Also, don’t forget to add dealer commissions or other fees to your losses or subtract from your profits to accurately calculate.
As shown above, the forex profit calculation formula is not complex at all. But still we suggest the use of our calculator to avoid any possible mistakes while determining profit or gain. We hope this tool will prevent you from losing money when trading. Trade wisely, watch if the capital is at risk.
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