Calculating Profit / Loss (Gain / Loss)

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Calculating Profit / Loss (Gain / Loss)
The smallest price movement is calculated in units of points / pips. The value of each point will vary according to type of currency pairs (pair), the contract size is used.

Contract size is usually specified in units of lots, Standard lot (100,000), Mini lot (10,000), or Micro lot (1000).

There are three types of Currency Pair (Pair):

Direct Rates
Is a pair with USD as the counter currency (USD is located in the rear), example: GBP / USD, EUR / USD, AUD / USD, and NZD / USD
Indirect Rates
Is a pair with USD as the base currency (USD is situated in front), example: USD / JPY, USD / CHF, USD / CAD
Cross Rates
Pairs which did not contain the USD, for example: GBP / JPY, EUR / JPY, AUD / JPY, EUR / GBP, and GBP / CHF

For example, Direct Rates currency (GBP / USD, EUR / USD, AUD / USD, and NZD / USD) way of calculating profit / loss are as follows:

(Selling Price - Purchase Price) x contract size x lot = Calculation of profit / loss

Example:

Buy 3 standard lot EUR / USD 1.2000
Sell ​​(liquid) 3 lots of EUR / USD 1.2010

Profit = (1.2010 - 1.2000) x 100,000 x 3 = $ 300

Sell ​​one standard lot of GBP / USD 2.0001
Buy (liquid) 1 lot GBP / USD 2.0000

Profit = (1.2001 - 1.2000) x 100,000 x 1 = $ 10

Ending in a special currency / USD, there is a way that is easy calculations:
From the above conclusion, it means a profit of 1 point for standard lot (100K) Currency Exchange ending / usd profit is $ 10. While the value of 1 point for 1 mini lot (10K) is $ 1 and for micro lots (1K) per point is worth $ 0.1

For example, the currency Indirect Rates (USD / JPY, USD / CHF, USD / CAD) method of calculating profit / loss are as follows:

[(Selling Price - Purchase Price) / Price Liquidation] x contract size x lot = Calculation of profit / loss

Example:

Buy 1 standard lot USD / JPY 110.00
Sell ​​(liquid) 1 lot USD / JPY 110.01

Profit = [(110.01 - 110.00) / 110.01] x 100,000 x 1 = $ 9.09

Currency Cross Rates For instance (GBP / JPY, EUR / JPY, AUD / JPY, EUR / GBP, and GBP / CHF) method of calculating profit / loss are as follows:

{[(Selling Price - Purchase Price) x Rate Base Currency Current] / Rate Pair Current} x contract size x lot = Calculation of profit / loss

Example:

Sell ​​1 lot of EUR / USD at price 0.6760 (EUR / USD is the base currency of EUR / GBP, because the front of the EUR / GBP is the Base Currency)
Buy (Liquid) EUR / USD at price 0.6750
Rate EUR / USD: 1.1840

Profit = {[(0.6760 - 0.6750) x 1.1840] / 0.6750} x 100,000 = $ 175.4