A Forex Profit Calculator is a tool that can be used to determine how much money and pips you can expect to make or lose in a trading position. You can find out if you ended your position with a profit or a loss by entering values into the trade's calculator and seeing what happens.
Profit In foreign exchange, it's the difference between your open and closing prices. Buying (long) and selling (short) are the two options available when trading forex. With a purchase trade, you need to acquire a currency cheaply and sell it for a profitably high price. To benefit from a sell transaction, you must sell a currency at a high price and then buy it again at a lower one.
A Profit Calculator makes this simple. Just pick a currency pair, your account currency, the length of time you held the position open for, how much you lost (if any), and the price you bought and sold at to get started. Using the Profit Calculator, you can see exactly how the deal fared, taking into account the swap charge, by clicking on "Calculate."
Currency Pair: A wide range of trading options to choose from. As an example, consider the AUD/USD pair.
Account Currency: This section is simple to grasp. Your money must be placed in this box before it can be converted into another currency. For example, choose the Australian Dollars (AUD).
Buy/Sell: A long trade will be used in this section. We are going to buy shares.
Lot Size: One standard lot of a Forex pair is 100,000 units per 1 lot. Non-Forex pair, come in a variety sizes. You can choose the size of the trade and use lots or units for calculations. For this example, I will input a trade size of 0.10 mini lot (0.0001).
The result: The Profit Calculator will show profits you can make (based on the currency you entered) and also how many pips you made.
The formula of profit calculator woks as the following:
Profit in Account Currency = ((close price – open price) * Position size / (or *) Currency rate) ± (swap in account currency value *period)
Profit Calculator example:
|Account Currency||Currency||Period||Position Size||Type||Open Price||Close Price||Profit|
|Example 1||EUR||EURUSD||0 Days||10,000||Sell/Short||1.35777||1.35111||€49.29|
|Example 2||USD||EURGBP||0 Days||10,000||Buy/Long||0.73044||0.73025||$-2.93|