Pip value

The Formula

What Each Symbol Means

See It Worked With Real Numbers

A formula on its own does not tell you which number goes where. The how to calculate forex 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 Forex Profit, filed under Finance. Every number the guide produces comes from substituting into this one line.

Related Formulas

• Cost and proceeds

  Cost = Buy x Qty; Proceeds = Sell x Qty

• Cost and proceeds

  Cost = Shares x Buy; Proceeds = Shares x Sell

• Fees

  Fees = (Cost + Proceeds) x Fee rate

• Gross profit

  Gross = (Exit - Entry) x Qty x Direction

• Net profit and return

  Net = Proceeds - Cost - Fees; Return = Net / Cost

• Net profit and return

  Net = Gross - Fees; Return = Net / (Entry x Qty)

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