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.