Trading & Investing
Net profit and return
The realised profit and its return on the capital committed.
The Formula
Net = Gross - Fees; Return = Net / (Entry x Qty)
The realised profit and its return on the capital committed.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| G | Gross profit | currency | Profit before fees. |
| F | Fees | currency | Commission on both sides. |
| E | Entry price | currency | Price the trade was opened at. |
| Q | Quantity | count | Units traded. |
What Each Symbol Means
Gcurrency
Gross profit
Profit before fees.
Fcurrency
Fees
Commission on both sides.
Ecurrency
Entry price
Price the trade was opened at.
Qcount
Quantity
Units traded.
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.