Profit/Loss calculator
Calculate profit or loss for your stocks, forex, and crypto trades
📊 Understanding Profit/Loss
Profit and loss calculation is fundamental to all types of trading. It shows how much money you made or lost on a trade based on the difference between your entry and exit prices, multiplied by your position size.
Understanding your P&L helps you evaluate trading performance and make better decisions for future trades.
🔍 How Profit/Loss Is Calculated
The calculation involves several components:
- Entry Price: The price at which you entered the trade
- Exit Price: The price at which you closed the trade
- Position Size: The size of your position (shares for stocks, lot size for forex/crypto)
- Trade Direction: Whether you bought (long) or sold (short)
- Trading Fees: Commission, spread, swap fees, and other transaction costs
For Stocks: Profit/Loss = (Exit Price - Entry Price) × Number of Shares - Trading Fees
For Forex/Crypto: Profit/Loss = Pips × Pip Value × Lot Size - Trading Fees
❓ Frequently Asked Questions
How is stock profit/loss calculated?
For stocks: (Exit Price - Entry Price) × Number of Shares - Trading Fees. For long positions, you profit when the stock price rises. For short positions, you profit when the stock price falls.
How is forex profit/loss calculated?
For forex: (Exit Price - Entry Price) × Lot Size × Contract Size - Trading Fees. The calculation uses pips (smallest price movements) and pip values specific to each currency pair.
What is a pip in forex trading?
A pip is the smallest price movement in forex, typically 0.0001 for most pairs and 0.01 for JPY pairs. Pip value helps measure the magnitude of price movements in your trades.
How do I calculate percentage return?
Percentage return is calculated as (Net Profit/Loss ÷ Initial Investment) × 100. For stocks, this is based on the total amount invested. For forex, this is based on the margin used.
What are trading fees?
Trading fees include commission, spread, swap fees, and other transaction costs. These should be subtracted from your gross profit/loss to get the net result.