# When trading CFD's how do you work out profit/loss?

#### roy12

##### Junior member
17 0
When you are trading CFD's how do you work out the profit/loss? For example, if you go long on the FTSE100 @ 5879.00 and get out @ 5880.00, how do you work out the point price?

I guess it depends on the amount of CFD's you buy? Is there a easy formula to use?

I know some software do it automatically and show you but I want to be able to do it manually too.

I am a new trader learning the markets, any help would be great.

#### Joules MM1

##### Established member
648 142
When you are trading CFD's how do you work out the profit/loss? For example, if you go long on the FTSE100 @ 5879.00 and get out @ 5880.00, how do you work out the point price?

I guess it depends on the amount of CFD's you buy? Is there a easy formula to use?

I know some software do it automatically and show you but I want to be able to do it manually too.

I am a new trader learning the markets, any help would be great.

your provider should already have a site that shows you what the value of each instrument is for each pip/point moved for the amount of leverage youre using.....you should already know this before making a trade ....regardless of the pos sized.......

#### Smooth

##### Junior member
15 0
In your case it's (5880-5879)x Your Stake which is probably in GBP. So if you trade was for £5, your profit would be (5880-5879)x5.

If your stake was in points, you need to check with your broker as Joules says above. With my broker (IGM) one point is one GBP.

#### roy12

##### Junior member
17 0
In your case it's (5880-5879)x Your Stake which is probably in GBP. So if you trade was for £5, your profit would be (5880-5879)x5.

If your stake was in points, you need to check with your broker as Joules says above. With my broker (IGM) one point is one GBP.

Ok thanks I understand this now. The point is worth £1 with the broker I am using. So therefore,

(5800.0 - 5879.0) x amount of CFD bought.

(5800.0 - 5879.0) x 2 = profit/loss

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