Computing Profit and Loss From Entry and Exit Prices
Posted: Thu Oct 29, 2026 7:32 am
Computing Profit and Loss From Entry and Exit Prices
Scenario: you buy 0.30 lots of EUR/USD at 1.1000 and close at 1.1045. A second trade sells 0.20 lots of EUR/USD at 1.1000 and closes at 1.0980.
Work it out for trade one. The price change is 45 pips in your favor. At 0.30 lots, one pip is 3 dollars. Profit: 45 times 3 is 135 dollars.
For trade two. A short profits when price falls. The change is 20 pips in your favor. At 0.20 lots, one pip is 2 dollars. Profit: 20 times 2 is 40 dollars.
Now include the spread. Suppose the spread was 1 pip on both. Trade one: you bought at the ask, so the effective entry was 1.1001, and you sold at the bid. If the bid at exit was 1.1045, the actual change was 44 pips, so profit was 132 dollars. Many platforms show the profit net of spread automatically, based on the actual fill prices.
The generic formula is: pips gained times pip value per lot times lot size. For USD-quoted pairs, pip value is ten dollars per standard lot.
Practice with a loss. Buy 0.40 lots at 1.1000, close at 1.0975. The loss is 25 pips times 4 dollars, which is 100 dollars.
Takeaway: profit equals pips, times pip value, times lots. Check your platform against your manual calculation occasionally.
Practical step: compute the profit or loss of three of your recent trades by hand and compare with the statement.
Scenario: you buy 0.30 lots of EUR/USD at 1.1000 and close at 1.1045. A second trade sells 0.20 lots of EUR/USD at 1.1000 and closes at 1.0980.
Work it out for trade one. The price change is 45 pips in your favor. At 0.30 lots, one pip is 3 dollars. Profit: 45 times 3 is 135 dollars.
For trade two. A short profits when price falls. The change is 20 pips in your favor. At 0.20 lots, one pip is 2 dollars. Profit: 20 times 2 is 40 dollars.
Now include the spread. Suppose the spread was 1 pip on both. Trade one: you bought at the ask, so the effective entry was 1.1001, and you sold at the bid. If the bid at exit was 1.1045, the actual change was 44 pips, so profit was 132 dollars. Many platforms show the profit net of spread automatically, based on the actual fill prices.
The generic formula is: pips gained times pip value per lot times lot size. For USD-quoted pairs, pip value is ten dollars per standard lot.
Practice with a loss. Buy 0.40 lots at 1.1000, close at 1.0975. The loss is 25 pips times 4 dollars, which is 100 dollars.
Takeaway: profit equals pips, times pip value, times lots. Check your platform against your manual calculation occasionally.
Practical step: compute the profit or loss of three of your recent trades by hand and compare with the statement.