- Calculating Profit & Loss

A Guide to Forex Trading

To help you get up to speed and trading as soon as possible, the UpXF™ team has created a comprehensive collection of documents to introduce you to the important skills and concepts critical to success. We recommend every new user take a few moments to go through these important articles to help maximize success and minimize risk.

Why

Integrity and transparency are fundamentals at UpFX™, and we don't compromise when it comes to our day to day business operations, our customers and finances. Our trading products are authorized and regulated by SIBA, the Seychelles International Business Authority, and our finances are segregated, professionally managed by UpFX.com, Ltd., who is authorized and regulated by New Zealand Companies Office, and is a registered Financial Services Provider. Our operations are audited by professionals in the legal and accounting industries.

Trading Tools & Resources

At UpFX™ we take it upon ourselves to help maximize your trading power and success in any way we can. As part of this effort we proudly provide a selection of helpful tools and references to assist you with common Forex trading calculations.

About UpFX™

We're UpFX™, a new way of trading currencies and bullion. A better way. We're a no-nonsense broker offering impressive spreads at lightning fast execution speeds. And when we say no-nonsense we mean it; our no dealing desk advantage means that we take your orders straight to the market and don't stand in the middle. At UpFX™ we don't take your business and trust for granted and we'll prove it by providing you with the absolute best customer service and management possible.
UpFX™ was built with traders in mind. As traders ourselves we know what matters and what doesn't. We know the value of our time, and likewise value yours. Our philosophy is simple- provide traders like you with fair access to the foreign exchange and bullion markets. UpFX is the trade name of UpFX Capital Markets, Ltd. a leading forex and bullion trading house. We are a Republic of Seychelles registered company (Register No: 095435).

Calculating P & L

At UpFX™ we'll calculate your profit and loss automatically. Still, it's important for you to be able to calculate this for yourself. Below are some helpful tips.

Profit = Price Change in Pips X Units Traded / Exit Price

Currency trading is always done by using currency pairs. The value of your forex investment increases or decreases due to the changes in the currency exchange rate. So calculating profit and loss in forex trading is very important for every trader.

Profit & Loss Calculation

Whenever the quote currency i.e. the second currency is USD, you can calculate the profit and loss in USD terms by multiplying the number of Pips with 10 USD if the lot size is a standard lot of 100,000. Similarly, in case of mini lot of 10,000, the profit and loss from forex trading can be calculated by multiplying the number of Pips with 1 USD. In case of quote currency other than USD, the profit and loss will be calculated by dividing the number of pips with the exchange rate and then multiplying the result with lot size.

Currency Pairs	1 pip	1 pip move per 100k (lot)
EURUSD	.01	EUR 100'000 x .0001 = USD 10.00
USDJPY	.0001	USD 100'000 x .01 = JPY 1'000 / spot = approx USD 9.7
USDCHF	.01	EUR 100'000 x .0001 = USD 10.00
GBPUSD	.0001	USD 100'000 x .01 = JPY 1'000 / spot = approx USD 9.7
EURJPY	.01	EUR 100'000 x .0001 = USD 10.00
EURCHF	.0001	USD 100'000 x .01 = JPY 1'000 / spot = approx USD 9.7
EURGBP	.01	EUR 100'000 x .0001 = USD 10.00
GBPJPY	.0001	USD 100'000 x .01 = JPY 1'000 / spot = approx USD 9.7
GBPCHF	.01	EUR 100'000 x .0001 = USD 10.00