{"id":11721,"date":"2024-04-05T14:38:31","date_gmt":"2024-04-05T10:38:31","guid":{"rendered":"https:\/\/fxglory.com\/helpdesk\/docs\/fxglory-help-center\/learn-forex\/how-to-calculate-the-profit-and-loss-of-a-trade\/"},"modified":"2024-07-11T16:39:18","modified_gmt":"2024-07-11T12:39:18","slug":"how-to-calculate-the-profit-and-loss-of-a-trade","status":"publish","type":"docs","link":"https:\/\/fxglory.com\/helpdesk\/docs\/knowledgebase\/learn-forex\/how-to-calculate-the-profit-and-loss-of-a-trade\/","title":{"rendered":"How to calculate the profit and loss of a trade?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"11721\" class=\"elementor elementor-11721\" data-elementor-post-type=\"docs\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d3b62bc elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"d3b62bc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7c85357\" data-id=\"7c85357\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ec35a08 elementor-widget elementor-widget-text-editor\" data-id=\"ec35a08\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Here is an example of the calculation of your profit or loss:<\/p><ul><li>Let\u2019s trade one lot on EUR\/USD, which means that you are buying EUR and selling USD.<\/li><li>The rate you are quoted is 1.1278\/1.1280, so you buy 1 standard lot (100000 units). You are working on the \u201cask\u201d price of 1.1280 because you are buying EUR.<\/li><li>Then the price moves to 1.1290, and you decide to close your trade.<\/li><li>The new quote for EUR\/USD is 1.1290\/1.1292. Because you initially bought to enter the trade, now you sell to close the trade, so you must take the \u201cbid \u201cprice of 1.1290.<\/li><li>The difference between 1.1280 and 1.1290 is 10 pips, or 0.0010.<\/li><\/ul><p>According to the formula for calculating the pip, we have (.0001\/1.1290) x 100000 = 8.85 x 1.1290 = 9.99$ per pip x 10 pips = 99.9$.<\/p><p>* Remember, when you buy a currency, you will use the ask price, and when you sell, you will use the bid price.<br \/><br \/>The above example is for when the USD is a counter-currency. Here is another example of when USD is the base currency:<\/p><ul><li>Let&#8217;s buy U.S. dollars and sell Swiss francs.<\/li><li>The rate you are quoted is 1.4525 \/ 1.4530. Because you are buying U.S. dollars, you will be working on the &#8220;ask&#8221; price of 1.4530.<\/li><li>So you buy one standard lot (100,000 units) at 1.4530.<\/li><li>A few hours later, the price moves to 1.4550, and you decide to close your trade. The new quote for USD\/CHF is 1.4550 \/ 1.4555.<\/li><li>Since you&#8217;re closing your trade and you initially bought to enter the trade, you now sell to close the trade, so you must take the &#8220;bid&#8221; price of 1.4550.<\/li><li>The difference between 1.4530 and 1.4550 is 0.0020, or 20 pips.<\/li><li>Using our formula from before, we now have (.0001\/1.4550) x 100,000 = $6.87 per pip x 20 pips = $137.40.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Here is an example of the calculation of your profit or loss: Let\u2019s trade one lot on EUR\/USD, which means that you are buying EUR and selling USD. The rate you are quoted is 1.1278\/1.1280, so you buy 1 standard lot (100000 units). You are working on the \u201cask\u201d price of 1.1280 because you are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":9544,"menu_order":143,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"class_list":["post-11721","docs","type-docs","status-publish","hentry","no-post-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/docs\/11721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/comments?post=11721"}],"version-history":[{"count":1,"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/docs\/11721\/revisions"}],"predecessor-version":[{"id":15165,"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/docs\/11721\/revisions\/15165"}],"up":[{"embeddable":true,"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/docs\/9544"}],"wp:attachment":[{"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/media?parent=11721"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/fxglory.com\/helpdesk\/wp-json\/wp\/v2\/doc_tag?post=11721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}