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

## 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.

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.

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

Net profit = (12515 – 12340)

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.

The difference is (12338 – 12517) = -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)

## Common mistakes most traders make and how to avoid them?

Fear and greed are the number one causes for the common mistakes most traders make when trading. Fear and greed normally come before trading, during and after trading. When you are under fear or greed, you are likely to commit these mistakes most traders make; Get...

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