1. What is a Turnover Profit Calculator for Forex?

Definition: This calculator determines the net profit from a forex trade based on the entry and exit prices and the trade volume.

Purpose: It helps forex traders quickly calculate potential profits or losses from their trades before execution or to analyze completed trades.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Profit — Net profit (currency, e.g., USD)
• Exit Price — Selling price (currency per unit)
• Entry Price — Buying price (currency per unit)
• Volume — Trade size (units)

Explanation: The difference between exit and entry prices (per unit) multiplied by the trade volume gives the total profit or loss.

3. Importance of Profit Calculation in Forex

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

4. Using the Calculator

Tips: Enter the entry price (what you paid per unit), exit price (what you sold for per unit), and trade volume. All values must be positive numbers.

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: Does this include trading fees or commissions?
A: No, this calculates gross profit. Subtract any fees or commissions separately for net profit.

Q3: What units should I use for volume?
A: Use the same units as your broker (typically lots in forex - 1 standard lot = 100,000 units).

Q4: Can I use this for other markets besides forex?
A: Yes, this basic formula works for any market where you buy and sell assets (stocks, commodities, etc.).

Q5: How precise should my prices be?
A: For forex, use 5 decimal places (or 3 for JPY pairs) for accurate calculations.