Calculating Trade Profits
How To Calculate Profits from a Trade
Calculating trade profits is an essential aspect of trading. The formula for calculating trade profits depends on whether you have a sell or buy position. Here is how to calculate profits for each position:
- For a sell position: (OpenPrice – ClosePrice) × Lots × Contract size
- For a buy position: (ClosePrice - OpenPrice) × Lots × Contract size
The open price is the price at which you opened the position, while the close price is the price at which you closed the position. Lots refer to the number of units of the asset you're trading, while the contract size is the equivalent amount of the traded asset on the market.