A Forex Profit Calculator is useful to simulate how much money and pips a trading position represents, quantitatively, if the position is closed in profit or loss. It works by simulating a trading position opened and closed at specific values, and will display the results of the potential profit or loss in money and in pips.
Instrument: Traders can select from major, exoctic and minor currency pairs, global stock indices, popular cryptocurrencies, such as ADA, BTC, ETH, DOGE, LTC and XRP, and commodities, including Oil, Gold and Silver. Let's choose, for our example, the AUD/USD pair.
Deposit currency: This field is pretty straight forward. Select your trading account deposit currency to get the calculations converted to that currency. We will choose the AUD as our deposit currency, for our example.
Buy or sell: Simply input the trade direction, either long or short. For this example, we will use simulate a long trade, therefore we select the buy direction.
Lots (trade size): One standard lot in forex is 100,000 currency units, but units per 1 lot vary for non-forex pairs. In this field there's an option to switch between lots or units for the calculations. For our example, we will select a trading size of 0.10 lot.
Open price: Just input an open price for the trade. For our example, we will type an open price of 0.75345 for our AUD/USD position.
Close price: ;The last field of the calculator. Just input the closing price for the trade. On our example, we will type a close price of 0.75855.
Now, we hit the "Calculate" button.
The results: The Profit Calculator will calculate the profit in money (converted in account base currency previously selected) and also the profit in the total amount of pips gained.
So, for our example, opening a long AUD/USD trade, of 0.10 lots at 0.75345, and close it at 0.75855, will yield a profit of AUD 67.66 (profit in money), with a total of 51 pips gain (profit in pips).
This Profit Calculator can also be used to calculate how much equity and pips will be lost if the trader inputs a close price lower than the open price (on a buy trade), simulating a stop-loss hit. Or a close price higher than the open price, for a sell trade. When using the Profit Calculator to simulate a stop-loss hit, the results will be displayed in minus.