1. What is Forex Profit Calculation?

The Forex profit calculation determines the monetary gain or loss from a currency trade based on the price difference between opening and closing positions, multiplied by the trade volume and contract size.

2. How Does the Calculator Work?

The calculator uses the Forex profit formula:

Where:

• \( \text{Close Price} \) — Price when position was closed
• \( \text{Open Price} \) — Price when position was opened
• \( \text{Volume} \) — Trade size in lots (1 lot = 100,000 units typically)
• \( \text{Contract Size} \) — Number of currency units per lot (usually 100,000)

For short positions: The formula reverses to (Open Price - Close Price) × Volume × Contract Size

3. Importance of Profit Calculation

Details: Accurate profit calculation is essential for risk management, position sizing, and evaluating trading strategy performance in the Forex market.

4. Using the Calculator

Tips: Enter your trade details including position type (long/short), open and close prices, volume in lots, and contract size. The calculator will compute your profit or loss in your account currency.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between long and short positions?
A: Long positions profit when price increases, short positions profit when price decreases.

Q2: How is volume measured in Forex?
A: Volume is typically measured in lots, where 1 standard lot = 100,000 units of the base currency.

Q3: What is contract size?
A: Contract size is the number of currency units in one lot. For most brokers, this is 100,000 for standard lots.

Q4: How do I calculate profit for mini or micro lots?
A: For mini lots (10,000 units), set contract size to 10,000. For micro lots (1,000 units), set to 1,000.

Q5: Does this calculator account for commissions or swaps?
A: No, this calculates gross profit. For net profit, you would need to subtract commissions and add/subtract any swap fees.