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, trade size, and contract specifications.

2. How Does the Calculator Work?

The calculator uses the Forex profit formula:

Where:

• \( \text{Close} \) — Closing price of the trade
• \( \text{Open} \) — Opening price of the trade
• \( \text{Volume} \) — Trade size in lots
• \( \text{Contract Size} \) — Number of units per standard lot (typically 100,000 for major currencies)

Explanation: The formula calculates the absolute profit by multiplying the price difference by the total number of currency units traded.

3. Importance of Profit Calculation

Details: Accurate profit calculation is essential for risk management, performance evaluation, and trade planning in Forex markets.

4. Using the Calculator

Tips: Enter open and close prices with precision (typically 5 decimal places for Forex), volume in lots, and contract size (usually 100,000 for standard lots).

5. Frequently Asked Questions (FAQ)

Q1: What's a standard contract size in Forex?
A: For major currency pairs, 1 standard lot typically represents 100,000 units of the base currency.

Q2: How does pip value relate to this calculation?
A: The profit formula inherently accounts for pip value through the price difference and contract size.

Q3: Can this be used for mini and micro lots?
A: Yes, just adjust the volume accordingly (e.g., 0.1 for mini lots) or change the contract size parameter.

Q4: Does this account for commissions and swaps?
A: No, this calculates gross profit. For net profit, you'd need to subtract commissions and add/subtract swap fees.

Q5: How to calculate profit for different account currencies?
A: You'll need to convert the result using the appropriate exchange rate if your account uses a different currency than the pair's quote currency.