Forex Profit Calculator
Calculate your estimated profit, loss, and pip difference for foreign exchange trades.
Understanding Forex Profit
Foreign Exchange (Forex) trading involves buying one currency while simultaneously selling another. Because price movements are extremely small, they are measured in "pips" (Percentage in Point). Traders use leverage to control large trade sizes to magnify these small movements into significant profits (or losses).
What is a Pip?
A pip is usually the fourth decimal place in a currency pair (e.g., 0.0001). If EUR/USD moves from 1.1000 to 1.1050, it has moved 50 pips.
Worked Example
- Trade Size: 100,000 units (1 Standard Lot)
- Entry Price: 1.1000
- Exit Price: 1.1050
- Action: Buy
- Pip Difference = 1.1050 - 1.1000 = 0.0050 (50 pips)
- Profit = 0.0050 * 100,000 = $500.
Frequently Asked Questions
What is a standard lot?
A standard lot is 100,000 units of the base currency. A mini lot is 10,000 units, and a micro lot is 1,000 units.