Trading & Investing
Gross profit
The price move multiplied by the size, signed by direction.
The Formula
Gross = (Exit - Entry) x Qty x Direction
The price move multiplied by the size, signed by direction.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| E | Entry price | currency | Price the trade was opened at. |
| X | Exit price | currency | Price the trade was closed at. |
| Q | Quantity | count | Units traded. |
| d | Direction | count | Plus one for long, minus one for short. |
What Each Symbol Means
Ecurrency
Entry price
Price the trade was opened at.
Xcurrency
Exit price
Price the trade was closed at.
Qcount
Quantity
Units traded.
dcount
Direction
Plus one for long, minus one for short.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate trading profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Trading Profit, filed under Finance. Every number the guide produces comes from substituting into this one line.