1. What is an FX Profit Calculator?

Definition: This calculator estimates the profit or loss from a foreign exchange (Forex) trade based on price difference and trade volume.

Purpose: It helps traders quickly determine the monetary result of their Forex trades before or after execution.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Profit or loss (USD)
• \( P_{new} \) — New price (exit price)
• \( P_{old} \) — Old price (entry price)
• \( V \) — Trade volume (lots)

Explanation: The price difference is multiplied by the trade volume to calculate the absolute profit or loss amount.

3. Importance of FX Profit Calculation

Details: Accurate profit calculation helps traders manage risk, set proper stop-loss/take-profit levels, and evaluate trading strategies.

4. Using the Calculator

Tips: Enter both prices in USD (or your account currency), and volume in standard lots (1 lot = 100,000 units of base currency).

5. Frequently Asked Questions (FAQ)

Q1: What if the result is negative?
A: A negative result indicates a loss on the trade rather than a profit.

Q2: How do I calculate for different lot sizes?
A: Standard lots (1.0), mini lots (0.1), and micro lots (0.01) can all be entered directly in the volume field.

Q3: Does this include broker fees or spreads?
A: No, this calculates only the raw price movement. Deduct any fees separately for net profit.

Q4: Can I use this for other instruments besides Forex?
A: Yes, it works for any instrument where profit is calculated as (exit price - entry price) × volume.

Q5: How precise should my price inputs be?
A: Use 4 decimal places for most currency pairs (2 decimal places for JPY pairs).