Profit And Loss Calculator Forex

Forex P/L Formula:

\[ P/L = \text{Pip Difference} \times \text{Pip Value} \times \text{Position Size} \]

P/L (currency):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Forex P/L Calculation?

The Forex Profit/Loss calculation determines the monetary result of a currency trade based on price movement, position size, and the value of each pip movement.

2. How Does the Calculator Work?

The calculator uses the Forex P/L formula:

\[ P/L = \text{Pip Difference} \times \text{Pip Value} \times \text{Position Size} \]

Where:

Pip Difference — Number of pips the price has moved
Pip Value — Value of one pip in your account currency
Position Size — Size of your trade in lots

Explanation: The formula multiplies the price movement in pips by the value of each pip and the size of your position to determine your profit or loss.

3. Importance of P/L Calculation

Details: Accurate P/L calculation is crucial for risk management, position sizing, and evaluating trading performance in the forex market.

4. Using the Calculator

Tips: Enter the pip difference (can be negative for losses), pip value in your account currency, and position size in lots. All values must be valid numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a pip in forex trading?
A: A pip (percentage in point) is the smallest price move that a currency pair can make, typically 0.0001 for most pairs.

Q2: How do I determine pip value?
A: Pip value depends on the currency pair and your account currency. Many brokers provide pip value calculators.

Q3: What's a standard lot size?
A: A standard lot is 100,000 units of the base currency. Mini lots are 10,000 and micro lots are 1,000 units.

Q4: Can I use this for other markets?
A: This calculator is specifically designed for forex markets. Other markets may use different calculations.

Q5: Why is my P/L negative?
A: A negative P/L means the trade resulted in a loss, which occurs when the price moves against your position.