Profit/Loss Calculations ( Education )

Profit/loss calculations for spot direct currencies

The equation:
Profit/loss = (sell price – buy price) x traded amount

Profit/loss calculations for spot indirect currencies

The equation:
Profit/loss = (sell price – buy price) / closing price x traded amount

Profit/loss calculations for spot cross currencies

The equation:
Profit/loss = (sell price – buy price) x traded amount

NOTE:
in the case of cross currencies if the result of the profit/loss calculation was denominated in a direct currency we will multiply it by the exchange rate for that currencies with US dollar at the moment when the rade was closed to get the final result in US dollars. And if the result of the profit/loss calculation was denominated in an indirect currency we divide it by the exchange rate of the currency with the US dollar at the moment the trade was closed to get the final result in US dollars.

Profit/loss calculations for precious metals

The equation:
Profit/loss = (sell price – buy price) x traded amount