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How to use the forex calculator profit?

forex calculator profit

A Forex Profit Analyzer is useful for statistically modelling how much money and value a trading position represents, whether it is closed in profit or loss. It models an exact open and close of a trading position, displaying the potential profit or loss in both dollars and percentage points (pips).

Trading instruments include major, uncommon, and small currency pairs, global stock indices, well-known alternative currencies like ADA, BTC, ETH, DOGE, LTC, and XRP, as well as commodities like oil, gold, and silver. Let’s use the AUD/USD combination as an example.

Money deposited: Work in this subject is really straightforward. Select it if you want the calculations to be done in the currency that your trading account deposit is in. The profit from your trading is determined using the forex calculator. We’ll use the Australian dollar as an example for our deposit currency.

Take a position in the trade, either long or short, and then buy or sell. We select the buy position since in this case we are replicating a long trade.

The standard lot size (trading volume) for forex is 100,000 units; however, for non-forex pairs, the lot size can differ. For the computations in this area, you can use lots or units. For our example, we’ll pick a trading size of 0.10 lot.

Give an estimate of the deal’s open cost. For our AUD/USD transaction, we’ll input an open value of 0.75345 as an example. The close price appears in the calculation’s last column. Simply input the transaction’s closing price. For our example, we’ll input a close price of 0.7585. The button labelled “Calculate” is now selected.

Results: The profit calculator will calculate both the profit in total pip gains and the profit in dollars (converted from the previously selected account base currency). The trading outcomes are same when using the duplitrade replica trading platform.

Therefore, initiating a long position in the AUD/USD currency pair at 0.10 lots and closing it at 0.7585 will result in a profit of AUD 67.66 (profit in money) and a gain of 51 pips (profit in pips).

Why is it crucial to use a calculator?

When making trading decisions, it’s essential to understand the prospective profit or loss of a contract. Use our Forex profit calculator as a take profit or stop loss tool whether you’re using SL/tp values or manually closing the trade. If you want to use a more complex calculator to calculate your profit and include the specific risk you wish to use, go to our position size calculator.

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Investors have access to a variety of instruments, including major, exotic, and minor currency pairs, global stock indices, well-known cryptocurrencies like ADA, BTC, ETH, DOGE, Litecoin, and XRP, as well as commodities like oil, gold, and silver. Use the AUD/USD currency pair as an example.

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How is the profit from FX trading calculated?

Profit the difference between your foreign exchange open and close prices. When starting a foreign exchange deal, you have two choices:

buying and selling (short). To make money with a buy sale, you must buy the currency at a loss and sell it at a profit. To profit from a sell deal, it would be beneficial to sell a currency at a high price and then buy it back at a reduced price. You will have the best trading experience using the Duplitrade Copy Trading Platform. If you bought 100 pieces (a typical lot of gold) at $1890.00 and sold them at $1891.00, according to our tool’s gold profit calculator, you would net $100.

How to Calculate Gain and Loss

The exact formula for determining a position’s profit and loss is extremely straightforward. To calculate the P&L of a trade, you need to know the position size and the number of pip changes in the price.

The actual profit or loss will be determined by the position size multiplied by the price movement.

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Let’s examine an illustration:

Say you hold a stable position at 1.3147 in the 100,000 GBP/USD currency pair. When prices changed from GBP/USD 1.3147 to 1.3162, they rose by 15 pip. For an investment of 100,000 GBP/USD, the 15 pip movement is $150. (100,000 x .0015).

To determine whether we made a profit or a loss on each trade, we need to know if we were long or short.

Long position: A long position will result in a profit if the price rises; a long position will result in a loss if the price declines. Positions that are short: With a short position, a profit would come from a decrease in price rather than an increase.

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