How is Forex P&L calculated

klacken2

Newbie
1 0
Hi All

Sorry if this is a simple question but it has stumped me.

I am trying to set up an excel spreadsheet to deal with forex P&L.

But I have tried everything I can think of and am getting nowhere, so a little help really would be appreciated.

Let’s say I have two trades with GBP/NZD

I sell 3.00 lot at 1.95998

I close the trade at 1.65958

So a profit of 0.00040

But the IG metatrader system is showing this as USD $78.40



I buy 0.01 lot @ 1.97815

I close at 1.97523

So a loss of -0.00292

But the IG metatrader system is showing this as USD $-1.92



Can anyone give me a hint as to how they (IG) are calculating these P&L ?

Or, as I’m not bad at excel, a formula for it or a link to a site which can help create one.

Thanks
 

cantagril

Senior member
2,258 509
I can't tell you about IG but I'd think you need to plug in a commensurate pip value, commission and swap rate.
 
Last edited:

Akinozragore

Junior member
43 2
The actual calculation of profit and loss in a position is quite straightforward. To calculate the P&L of a position, what you need is the position size and the number of pips the price has moved. The actual profit or loss will be equal to the position size multiplied by the pip movement.
Assume that you have a 100,000 GBP/USD position currently trading at 1.3147. If the prices move from GBP/USD 1.3147 to 1.3162, then they jumped 15 pips. For a 100,000 GBP/USD position, the 15-pips movement equates to $150 (100,000 x .0015).
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 $150 profit.
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 $150. If the prices moved down by 20 pips, it would be a $200 profit.
 

Adoralmeena

Newbie
4 0
Let’s say you hold an account where the base currency is USD. This is the way Calculating profit your p[rofits.
The current rate for EUR/USD is 0.9517/0.9522 (where 0.9517 is the sell price and 0.9522 is the buy price. The spread is 5).
Let’s say you decide to sell 10,000 EUR at 0.9517.
This means you sold 10,000 EUR and bought 9,517.00 USD (10,000 EUR * 0.9517 = 9,517.00 USD).
After you trade, the market rate of EUR/USD decreases to 0.9500/0.9505. You decide to 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 back 10,000 EUR for 9,505 USD.
Your profit is 12.00 USD (9,517.00 - 9,505.00).
 

momo3HC

Member
74 12
Let’s say you hold an account where the base currency is USD. This is the way Calculating profit your p[rofits.
The current rate for EUR/USD is 0.9517/0.9522 (where 0.9517 is the sell price and 0.9522 is the buy price. The spread is 5).
Let’s say you decide to sell 10,000 EUR at 0.9517.
This means you sold 10,000 EUR and bought 9,517.00 USD (10,000 EUR * 0.9517 = 9,517.00 USD).
After you trade, the market rate of EUR/USD decreases to 0.9500/0.9505. You decide to 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 back 10,000 EUR for 9,505 USD.
Your profit is 12.00 USD (9,517.00 - 9,505.00).
Quite simple explained but not wrong. (y) Don`t forget take out commissions or swap from the profit if there`re some like this.
 

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