# How to Calculate Profit and Loss

When calculating profit or loss, consider the spread, as well as the interest differential. For easy calculation, use the following tools:

*Please note: This calculator only reflects the calculation of financing charges or credits on legacy accounts. For V20 accounts, it is not accurate when the financing rate has changed intraday. To find out how financing charges or credits are calculated visit here. To find out how your CFD pricing and financing works visit here.

## Example 1:

You see that the rate for EUR/USD is 0.9517/22 and decide to sell 10,000 EUR. Your trade is executed at 0.9517.

10,000 EUR * 0.9517= 9,517.00 USD

You sold 10,000 EUR and bought 9,517.00 USD.

After you trade, the market rate of EUR/USD decreases to EUR/USD=0.9500/05. You then buy back 10,000 EUR at 0.9505.

10,000 EUR *0.9505= 9,505.00 USD

You sold 10,000 EUR for 9,517 USD and bought 10,000 back for 9,505. The difference is your profit:

9,517.00-9,505.00= \$12.00 USD

## Example 2:

You see that the rate for USD/JPY is 115.00/05 and decide to buy 10,000 USD. Your trade is executed at 115.05.

10,000 USD*115.05= 1,150,500 JPY

You bought 10,000 USD and sold 1,150,500 JPY.

The market rate of USD/JPY falls to 114.45/50. You decide to sell back 10,000 USD at 114.45.

10,000 USD*114.45=1,144,500 JPY

You bought 10,000 USD for 1,150,500 JPY and sold 10,000 USD back for 1,144,500 JPY. The difference is your loss and is calculated as follows: 1,150,500-1,144,500= 6,000 JPY. Note that your loss is in JPY and must be converted back to dollars.

To calculate this amount in USD:

6,000 JPY/ 114.45 = \$52.42 USD or
6,000 *1/114.45=\$52.42

Your capital is at risk. Losses can exceed investment. Leverage trading is high risk and not for everyone.