Every trade ends with a result in money. To understand that result, you need the price movement, the trade size and the currency the profit is first counted in. This guide explains each part in plain terms first, then gives the precise definitions.
Leveraged forex and CFD trading can lose money fast, and losses can exceed what you planned. Calculating a result in advance does not reduce that risk. It only shows you what a price move means in money.
Fill in the empty fields to see the result.
The calculator above gives the result of a closed trade in money and in pips. Enter the instrument, the direction (buy or sell), the volume in lots, the open price and the close price. All the examples on this page use this calculator. We do not type example figures here, so enter your own inputs to see the numbers.
How to calculate profit in forex: the basic idea
A trade makes money when the price moves in your direction and loses money when it moves against you.
- Buy (long): you profit if the close price is higher than the open price.
- Sell (short): you profit if the close price is lower than the open price.
The size of the result depends on these inputs:
- The price difference between open and close.
- The volume. This is the number of lots. A lot is a standard trade size. See What is a lot.
- The contract size. This is how many units of the instrument one lot represents. It is set in the instrument specification.
If you are new to long and short positions, read Long and short first.
The formula in quote currency
In a currency pair such as EURUSD, the first currency is the base and the second is the quote. The price tells you how much quote currency one unit of base currency costs. See Currency pairs.
The raw result of a trade is always counted in the quote currency first.
| Direction | Profit or loss in quote currency |
|---|---|
| Buy | (Close price − Open price) × Contract size × Lots |
| Sell | (Open price − Close price) × Contract size × Lots |
A positive result is a profit. A negative result is a loss. The same formula covers forex loss calculation, so there is no separate method for losing trades.
Pip value calculation
A pip is the standard unit of price movement for an instrument. Its size depends on the instrument: most pairs quote more decimals than JPY pairs, and metals and indices have their own conventions. Some platforms also show a smaller step called a pipette or point. See Pips, points, pipettes.
The two formulas are:
- Result in pips = Price difference ÷ Pip size
- Pip value in quote currency = Pip size × Contract size × Lots
So the result in money can also be written as Pips × Pip value. Experienced traders often work this way because pip value stays fixed for a given volume, as long as the quote currency is the account currency.
More detail is on What is a pip.
Converting to your account currency
Your account has its own currency, for example USD. If the quote currency is different, the result has to be converted.
| Situation | Conversion |
|---|---|
| Account currency = quote currency (for example EURUSD in a USD account) | No conversion needed |
| Account currency = base currency (for example USDJPY in a USD account) | Divide the quote-currency result by the close price of the pair |
| Account currency is neither (for example EURGBP in a USD account) | Multiply the quote-currency result by the current rate from the quote currency to the account currency |
For the last case, the conversion rate comes from another pair, here GBPUSD. See Cross rates. Platforms convert at the market rate at the time of closing. Your final figure can therefore differ slightly from a manual estimate made earlier.
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Examples with the profit calculator
The calculator applies the formulas above. For each example, enter the listed inputs with your own values and compare the money and pip results it shows.
Forex: EURUSD
| Input | What to enter |
|---|---|
| Instrument | EURUSD |
| Direction | Buy or Sell |
| Volume | Your lots |
| Open / close price | Prices from your trade history |
The quote currency is USD. In a USD account, no conversion is needed. Change only the close price and watch the result: each pip of movement changes the result by the pip value for your volume.
Forex: USDJPY
Use the same inputs with USDJPY. The quote currency is JPY, so in a USD account the calculator divides the JPY result by the close price. You will see that the pip value in USD changes slightly as the USDJPY rate changes.
Gold: XAUUSD
| Input | What to enter |
|---|---|
| Instrument | XAUUSD |
| Direction | Buy or Sell |
| Volume | Your lots |
| Open / close price | Your gold prices |
Gold is quoted in USD per troy ounce. The contract size (ounces per lot) is set in the instrument specification, so check it in your platform. Gold often moves by large amounts in a short time, so the same lot size can produce much bigger swings than a major currency pair. See Gold and Metals.
Indices: US100
Enter US100 (also listed as NAS100 or USTEC by some brokers), your direction, volume and prices. Index CFDs are quoted in index points, and the money value of a point per lot depends on the contract size in the specification. The quote currency is USD. See Stock indices and USTEC (US Tech 100).
Precise definitions for experienced traders
- Gross P/L: the formula result above, using the actual fill prices. For a buy, the position opens at the ask and closes at the bid. For a sell, it opens at the bid and closes at the ask. The spread is already inside these prices. See Bid and ask.
- Commission: charged separately on some account types, usually per lot. Subtract it from gross P/L. See Commission per lot.
- Swap: a credit or charge for holding a position overnight. It is added to or subtracted from the result. See What is swap.
- Net P/L = Gross P/L − Commission ± Swap.
- Floating vs realised P/L: an open position shows floating P/L, which changes your equity but not your balance. The result is realised only when the position is closed.
- Slippage: the fill price can differ from the requested price, so the actual result can differ from your plan. See Slippage.
- Partial close: each closed part is calculated separately using its own volume. See Closing trades.
For a full breakdown of costs, see Total trading costs. Other tools are on the Calculators page.
A note on regulation in Pakistan
Note that per the SECP, offshore forex/CFD platforms operate without regulatory approval in Pakistan. Also, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Read Law and regulators before you open any account.
Frequent questions
What is a forex profit calculator?
It is a tool that turns a trade's inputs (instrument, direction, lots, open and close price) into a result in money and pips. The calculator on this page shows the result of a closed trade.
Why is my platform result different from my own calculation?
Your platform uses actual fill prices including the spread, adds commission and swap, and converts at the rate when the trade closed. Check each of these items.
Is pip value always the same?
It is fixed for a given volume only when the quote currency is your account currency. Otherwise it changes with the conversion rate.
How do I calculate a loss?
Use the same formula. A negative result is the loss in quote currency. Convert it to your account currency the same way as a profit.
Where do I find the contract size?
In the instrument specification inside your trading platform. It differs between forex pairs, gold and indices.
Can I practise these calculations without risking money?
Yes. A demo account shows P/L on virtual funds. Compare its results with the calculator. See also First demo trade.