Calculating Profits And Losses Of Your Currency Trades.
Currency trading offers a challenging and profitable opportunity for well-educated investors. However, it is also a risky market, and traders must always remain alert to their trade positions. The success or failure of a trader is measured in terms of the profits and losses (P&L) on his or her trades. It is important for traders to have a clear understanding of their P&L, because it directly affects the margin balance they have in their trading account. If prices move against you, your margin balance reduces, and you will have less money available for trading.
Realized and Unrealized Profit and Loss.
Until a position is closed, the P&L will remain unrealized. The profit or loss is realized (realized P&L) when you close out a trade position. When you close a position, the profit or loss is realized. In case of a profit, the margin balance is increased, and in case of a loss, it is decreased.
The total margin balance in your account will always be equal to the sum of initial margin deposit, realized P&L and unrealized P&L. Since the unrealized P&L is marked to market, it keeps fluctuating, as the prices of your trades change constantly. Due to this, the margin balance also keeps changing constantly.
Calculating Profit and Loss.
Let's look at an example:
Assume that you have a 100,000 GBP/USD position currently trading at 1.6240. If the prices move from GBP/USD 1.6240 to 1.6255, then the prices have move up by 15 pips. For a 100,000 GBP/USD position, the 15 pips movement equates to USD 150 (100,000 x 15).
To determine if it's a profit or loss, we need to know whether we were long or short for each trade.
Long position: In case of a long position, if the prices move up, it will be a profit, and if the prices move down it will be a loss. In our earlier example, if the position is long GBP/USD, then it would be a USD 150 profit. Alternatively, if the prices had moved down from GBP/USD 1.6240 to 1.6220, then it will be a USD 200 loss (100,000 x -0.0020).
Short position: In case of a short position, if the prices move up, it will be a loss, and if the prices move down it will be a profit. In the same example, if we had a short GBP/USD position and the prices moved up by 15 pips, it would be a loss of USD 150. If the prices moved down by 20 pips, it would be a USD 200 profit.
The following table summarizes the calculation of P&L:
Another aspect of the P&L is the currency in which it is denominated. In our example the P&L was denominated in dollars. However, this may not always be the case.
In our example, the GBP/USD is quoted in terms of the number of USD per GBP. GBP is the base currency and USD is the quote currency. At a rate of GBP/USD 1.6240, it costs USD 1.6240 to buy one GBP. So, if the price fluctuates, it will be a change in the dollar value. For a standard lot, each pip will be worth USD 10, and the profit and loss will be in USD. As a general rule, the P&L will be denominated in the quote currency, so if it's not in USD, you will have to convert it into USD for margin calculations.
Consider you have a 100,000 short position on USD/CHF. In this case your P&L will be denominated in Swiss francs. The current rate is roughly 0.9129. For a standard lot, each pip will be worth CHF 10. If the price has moved down by 10 pips to 0.9119, it will be a profit of CHF 100. To convert this P&L into USD, you will have to divide the P&L by the USD/CHF rate, i. e., CHF 100 / 0.9119, which will be USD 109.6611.
Once we have the P&L values, these can easily be used to calculate the margin balance available in the trading account. Margin calculations are typically in USD.
You will not have to perform these calculations manually because all brokerage accounts automatically calculate the P&L for all your trades. However, it is important that you understand these calculations as you will have to calculate your P&L and margin requirements while structuring your trade even before you actually enter the trade. Depending on how much leverage your trading account offers, you can calculate the margin required to hold a position. For example, if your have a leverage of 100:1, you will require a margin of $1,000 to open a standard lot position of 100,000 USD/CHF.

Pip Calculator.
Pip calculator tool helps you to calculate your profitable pips and value of each pip, “ForexSQ experts conducted the best free online FX pip value calculators to calculate.
Free Forex Pip Calculator.
With free pip calculators or online CFD Calculators you can complete a number of important trading calculations. Each of the individual FX Calculators uses the latest rates, and calculations can be made using numerous currency pairs. You can also change the values into one of the seven account currencies your trading account is denominated in. On this page you’ll find several CFD Calculators, as well as further information about forex rates.
Easily Make Pip Trading Calculations.
There are different types of online Forex calculators tools like the Margin Calculator, which works out how much margin is needed to open a position, and the Profit Calculator, which shows the performance of previous trades, factoring in all the fees. Every FX Calculator includes an explanation of how the calculations are worked out and allows the values to be changed depending on your needs.
More Free Forex Pip Value Calculator Applications.
FX Calculators that work out the pip value of each position in your chosen currency, as well as Currency Converter and Commission Calculator are all vital for forex traders.
Some Forex Brokers also have a mobile app available for both Apple and Android devices, which includes all these Forex and CFD Calculators to help you trade on the go.
PIP Value Calculator Example.
To manage risk more effectively, it is important to know the pip value of each position in the currency of your trading account.
The Pip Calculator tool does this for you. All you have to do is enter your position details, including the instrument you are trading, the trade size and your account currency. Click ‘Calculate’ and the Pip Calculator will determine how much each pip is worth.
For forex, the Pip Calculator works as follows: Pip Value = (Pip in decimal places * Trade Size) / Market Price.
Trading 1 lot of EUR/USD with an account denominated in EUR.
One pip in decimals = 0.0001, Trade Size = 100,000, Exchange Rate = 1.13798.
0.0001 * 100,000 = 10 => 10 / 1.13798 = 8.78750.
Each pip is worth €8.79.
For metals, you calculate tick value instead of pip value, and the Pip Calculator works as follows: Tick Value = Tick in decimals (0.01) * Number of Oz.
Trading 1 lot (100 Oz) of GOLD with an account denominated in USD.
Each tick is worth $1.
Free Online PIP Profit Calculators.
As each broker has different spreads on currency pairs so there are many online pip profit calculators and you must ask your forex broker if it has online pip profit calculator or no, If your broker dose not provides you pip calculators then you can use other brokers online FX pip value calculator. One of the most popular online pip calculator is the FxPro pip value calculator.

Profit calculator forex pips

Understanding how to calculate pip value and profit/loss requires a basic knowledge of currency pairs and crosses.
Currency pairs where the USD is the quote currency are referred to as direct rates. This holds true for such currencies as the EUR, GBP, NZD and the AUD.
Calculating direct Rate Pip Value.
Pip stands for "price interest point" and refers to the smallest incremental price move of a currency. Tick size is the smallest possible change in price. Pip value for direct rates are calculated according to the following formula:
Formula: Pip = lot size x tick size.
Example for 100,000 GBP/USD contract:
1 pip = 100,000 (lot size) x .0001 (tick size) = $10.00 USD.
Calculating Direct Rate P/L (Profit/Loss)
Calculating P/L for direct rates is calculated as follows:
Formula: Selling price - Purchase price = P/L.
Example for 200,000 GBP/USD contract initially bought at 1.7505 then sold (closed) at 1.7540:
1.7540 (selling price) - 1.7505 (purchase price) = .0035 positive pip difference = 35 pip profit.
To further convert the above P/L to USD, use the following calculation:
Formula: Pip profit (loss) x lot size x tick size = USD profit (loss)
35 (pip profit) x 200,000 (lot size) x .0001 (tick size) = USD $700 profit.
Most currencies are traded indirectly against the U. S. Dollar (USD), and these pairs are referred to as indirect rates. An example is the USD/CAD (Canadian Dollar). The USD is the "base currency," the CAD is the "quote currency" and the rate quote is expressed as units per USD. An example of a indirect rate is as follows: USD/CAD trading at 1.1500 means that 1 USD = 1.1500 CAD.
Calculating Indirect Rate Pip Value.
Pip stands for "price interest point" and refers to the smallest incremental price move of a currency. Tick size is the smallest possible change in price. Pip value for indirect rates are calculated according to the following formula:
Formula: pip = lot size x tick size / current rate.
Example for 100,000 USD/JPY contract currently trading at 120.50:
1 pip = 100,000 (lot size) x .01 (tick size) / 120.50 (current rate) = USD $8.30.
Calculating Indirect Rate P/L (Profit/Loss)
Calculating P/L for indirect rates is calculated as follows:
Formula Selling price - Purchase price = P/L.
Example for 100,000 USD/JPY contract initially bought at 120.50 then sold (closed) at 120.30:
120.30 (selling price) - 120.50 (purchase price) = -.20 negative pip difference = 20 pip loss.
To further convert the above P/L to USD, use the above "Calculating Indirect Rate Pip Value" as follows:
1 pip = 100,000 (lot size) x .01 (tick size) / 120.30 (current rate) = USD $8.31.
Therefore: USD $8.31 (pip value) x 20 (pip loss) = USD $166.20 loss.
Currency pairs that do not involve the USD are referred to as cross rates. Even though the USD is not represented in the quote, the USD rate is usually used in the quote calculation. An example of a cross rate is the EUR/GBP. Again, the EUR is the base currency and the GBP is the quote currency.
Calculating Cross Rate Pip Value.
Pip stands for "price interest point" and refers to the smallest incremental price move of a currency. Tick size is the smallest possible change in price. The base quote is the current base pair quote. Pip value for cross rates are calculated according to the following formula:
Formula Pip = lot size x tick size x base quote / current rate.
Example for 100,000 EUR/GBP contract currently trading at .6750, and EUR/USD currently trading at 1.1840:
1 pip = 100,000 (lot size) x .0001 (tick size) x 1.1840 (EUR/USD base quote) / .6750 (current rate) = USD $17.54.
Calculating Cross Rate P/L (Profit/Loss)
Calculating P/L for cross rates is calculated as follows:
Formula Selling price - Purchase price = P/L.
Example for 100,000 EUR/GBP contract initially sold at .6760 then bought (closed) at .6750:
.6760 (selling price) - .6750 (purchase price) = .0010 positive pip difference = 10 pip profit.
To further convert the above P/L to USD, use the above "Calculating Cross Rate Pip Value" as follows:
1 pip = 100,000 (lot size) x .0001 (tick size) x 1.1840 (EUR/USD base quote) / .6750 (current rate) = USD $17.54.
Therefore: USD $17.54 (pip value) x 10 (pip profit) = USD $170.54 profit.
. Retail off-exchange foreign currency trading involves the risk of financial loss and may not be suitable for every individual.

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Our Forex pip calculator can help you calculate the value of a pip by selecting the currency pair and associated parameters. It can also help you evaluate the potential gains and losses from the sale or purchase of a currency pair depending on the lot size and exchange rate. The FXDD pip calculator is a tool for helping Forex traders who need to quickly estimate profits and losses depending on price movements in the Forex market. The Forex trading pip calculator works with most actively traded currency pairs and it also allows you to use our Fibonacci calculator to find percentage changes for highs and lows that other traders could be looking at. Use pivot points, spread costs and other variables such as margin to know how much the value of a particular currency trading pair is changing over time.
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