You can also set different bid and ask prices and compare the results on the forex profit calculator.

What you should look at to calculate the profit /loss on a trade  

•  Your Trading Account’s currency
• Opening trade price
• Trade direction
• Trade size
• And closing trade price.

How to use a forex profit calculator

• First,Pick the currency pair you wish to trade
• Choose if you are selling or buying
• Set the open and close price
• Select in which currency you would like to see the results
• Type the number of units in the trade (position size).
• Click on the Calculate button.
  The profit/loss is shown below this button (a negative value indicates a loss).
• To compare new values, just change them and use the Calculate button again to see the results.

How to Calculate Profit and Loss using a formula

To clearly understand the profit and loss calculation, we shall consider some examples on how to calculate profit or loss with a formula.

The following two examples illustrate how to calculate profit or loss after taking a trade.

1st example on how to calculate profit or loss

If the current bid/ask for USD/CAD is 1.2338/1.2340, and you want to buy 10,000 Euros at 1.2340.

It simply means you can buy $1 at 1.2340 CAD or sell $1 at 1.2338 CAD.

When you buy $10,000 each at 1.2340, you will pay (10,000 x 1.2340) = 12340 CAD.

After taking a trade and price rises to 1.2515/1.2517.

Since we are buying USD while selling the CAD, to close trade we must sell the dollar and buy back the CAD.

To calculate your profit,

Selling $10,000 at 1.2515, you will receive (10000 x 1.2515) = 12515 CAD

Net profit = (12515 – 12340)

= 175 CAD

To change your profits into dollars, you simply divide your answer with the current exchange rate (price), USD/CAD at 1.2515.

Profit = 175/1.2515

=$139.8

2nd example on how to calculate profit or loss

Now from the example above, let’s say we decide to sell USD/CAD and trade at the same price 1.2338/1.2340.

To sell $10,000 you pay 12338 CAD (10,000 x 1.2338).

However, if USD strengthens after taking a trade and closes with your stop loss to 1.2515/1.2517.

This means your minimum loss attained after selling $10,000 at 1.2517 and received 12517 CAD.

You sold $10,000 at 1.2338 CAD, receiving 12338 CAD.

When you buy back $10,000 at 1.2517, you pay 12517 CAD.

The difference is (12338 – 12517) = -179 CAD

Total Loss = (179) CAD

To convert it to dollar, you simply multiply by the current rate, USD/CAD rate, 1.2517

179/1.2517

= Total loss in dollars = ($143)