Profit/Loss Calculator
Calculate your potential profit or loss before entering a trade. Make informed decisions with precise P&L analysis.
Trade Calculator
What-If Scenarios
Test different exit prices to see how they affect your P&L:
Learn About P&L
Understanding Trade P&L
Profit and Loss (P&L) is the difference between your entry price and exit price, multiplied by your position size. A positive P&L means profit, while negative means a loss. Understanding P&L helps you assess risk and manage your positions effectively.
How to Calculate Forex Profit
In forex trading, P&L = (Exit Price - Entry Price) × Lots × Pip Value. For most pairs, one pip is 0.0001 (except JPY pairs where it's 0.01). A standard lot is 100,000 units. Always account for your account currency when converting.
The Role of Leverage
Leverage amplifies both profits and losses. While leverage allows you to control larger positions with less capital, it increases risk significantly. Always calculate your risk before using leverage and maintain proper position sizing.
Managing Risk with Stop Losses
A stop loss is a predetermined price at which you'll exit a losing trade. Set your stop loss before entering a trade to limit potential losses. Use this calculator to determine your maximum loss based on different stop loss levels.
Position Sizing Strategies
Proper position sizing is crucial for long-term trading success. Common approaches include percentage risk (risking 1-2% of account per trade) and fixed lot sizes. Never risk more than you can afford to lose on a single trade.
Currency Pair Characteristics
Different currency pairs have different volatility, liquidity, and pip values. Major pairs (EUR/USD, GBP/USD) are generally more liquid. Exotic pairs have wider spreads. Understand each pair's characteristics before trading.