Profit Calculator
What is Profit?
Everyone has heard the word profit, but not everyone knows what it actually means. Put simply, profit refers to the overall financial gain made from a business transaction or investment after deducting associated costs, expenses, and taxes.
In trading specifically, it represents the positive difference between the buying price (entry price) and the selling price (exit price) of any specific financial instrument.
It’s important to remember that profit is only equal to your positive gains AFTER taking away all possible expenses and taxes.
This means if you were to calculate your profit on a specific forex trade, you would want to include any trading fees involved. If you were to calculate total trading profits for a whole year of trading, you would want to deduct any taxes, trading fees, subscriptions to specific brokers, or any other potential expenses.
How to Use the Profit Calculator
Manually calculating your potential profits can be quite tedious, which is why many forex traders use our profit calculator to quickly and easily get results.
All you need to do is fill in the following data fields, and click calculate:
- Currency Pair: Select the currency pair you are trading
- Account Currency: Specify the deposit currency of your trading account
- Trade Size: Enter the size of your trade in either lots or units
- Open Price: Input the entry price of your trade, i.e. the price you bought at
- Close Price: Enter the exit price of your trade, i.e. the price you sold at
- Direction: Indicate whether you took a buy or sell position (long or short) in the trade.
When everything is filled in correctly, the profit calculator works out the difference between the entry and exit prices and multiplies it based on your given pip value, giving you your total profit number.