Use one of the following formulas:
- For Buy Positions: Profit/Loss = (Contract × ClosePrice) - (Contract × OpenPrice)
- For Sell Positions: Profit/Loss = (Contract × OpenPrice) - (Contract × ClosePrice)
- Profit/Loss the profits/losses on the position expressed in the quote currency
- Contract: the size of the contract in the base currency
- ClosePrice: the rate when the position is closed
- OpenPrice: the rate when the position is opened
Example: Let's calculate the USD profits/losses for a position on EURGBP.
- Contract Size (in lots): 0.19 lots
- Trading Instrument: EURGBP
- EURGBP OpenPrice: 0.6983
- EURGBP ClosePrice: 0.6883 (0.6983 - 0.6883 = 0.0100 = 100 pips)
- Contract Size (in EUR): 19,000 EUR
- GBPUSD Rate: 2.0256 (to convert the profits/losses from GBP to USD)
- Profit/Loss = (19,000 × 0.6983) - (19,000 × 0.6883) = 13267.7 – 13077.7 = 190 GBP.
- Now we'll convert to USD: 190 GBP × 2.0256 = 384.86 USD.
So, the position earned 384.86 USD in profits.
You can calculate the profits/losses for positions on other currency pairs and on spot metals very much like in the example above.
Profits and losses on the SPX500 instrument are calculated as follows:
- For Buy positions: Profit/Loss = (ClosePrice – OpenPrice) × Lots × 100;
- For Sell positions: Profit/Loss = (OpenPrice – ClosePrice) × Lots × 100.