How forex profit is calculated
Profit = (Exit − Entry) × Lots × Contract size
For a sell, the distance is flipped to Entry − Exit, so you make money when price falls. The result comes out in the pair's quote currency and is converted into your account currency.
Profit and loss examples
| Trade | Move | Result |
|---|---|---|
| Buy 1 lot EURUSD, 1.1400 to 1.1450 | +50 pips | +$500 |
| Sell 0.5 lot XAUUSD, 4,300 to 4,280 | +200 pips | +$1,000 |
| Buy 1 lot USDJPY, 157.00 to 157.50 | +50 pips | +¥50,000 ≈ +$317 |
| Buy 2 lots NAS100, 30,500 to 30,420 (contract size 1) | −80 points | −$160 |
Pips and money
The calculator shows both. Pips tell you how far price moved; money tells you what that move was worth at your lot size. A 50-pip win on 0.10 lot of EURUSD is $50, and the same 50 pips on 1 lot is $500.
Check risk and reward before you enter
Run the calculator twice: once with your take profit as the exit and once with your stop loss. If the loss at the stop is bigger than the profit at the target, the trade needs a better entry or a different target.