The profit formula
Price change = exit − entry (for a buy) or entry − exit (for a sell)
Profit (quote currency) = price change × contract size × lots
Profit (account currency) = converted at the current rate
Worked examples
- Buy 1 lot EUR/USD at 1.1000, close at 1.1050: +0.0050 × 100,000 = +$500, or 50 pips.
- Sell 1 lot USD/JPY at 150.00, close at 149.00: +1.00 × 100,000 = ¥100,000, or 100 pips. In dollars at 149.00 that is about +$671.
- Buy 0.20 lots of gold at 2,400.00, close at 2,390.00 (example prices): −10.00 × 100 × 0.20 = −$200, or −100 pips.
From one trade to a strategy
A single trade's result says little on its own. What decides whether a strategy works is the balance between its average win, its average loss and how often it wins. Use the risk reward calculator to see the win rate a setup needs, and our guide to evaluating an expert advisor for the numbers that matter over hundreds of trades.