Forex guide

Guide to calculating profit

The Forex trade result consists of the difference between the opening price and the closing price of the asset. In long trading, the trader earns a profit from the price’s growth. The short trading is the opposite, with the profit earned from the lowering of the price.

A simple formula will help you with that:

(Difference between the opening and closing of the trade / Current price) * Investment’s volume * Multiplier - Commission = Profit.

For example, a trader opened a long trade for USD/JPY. The opening price is 105,000. The closing price is 105,500. $100 was invested. Multiplier equals x500. Just like that, the trade volume is $50,000, with the opening commission of $4.

((105.500 - 105.000) / 105.000) x 100 x 500 - 4 = $234

If the multiplier is x1, then you can skip the part with multiplying by it.