Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account
Register


Results 1 to 4 of 4
  1. #1
    Florence Wen is offline Registered User
    Join Date
    Dec 2009
    Posts
    2

    Question Gross Profit & Loss Calculation

    Hi everyone,
    I have a demo account and have a question for how to calculate Gross Profit and Loss.
    For example, I enter 5K for a long position of USD/CAD, the open price is 1.05557, close at 1.05524, then P/L would be -3.3, the Gross P/L would be -1.65 (5x3.3x0.1), however, the Gross Profit & Loss column on my screen shows -1.56.
    I understand that may be there are some administration fees apply, but don't know how to apply and the percentage, or the other reasons that I don't get the right figure. Can someone explain?

    Thanks!

    Florence

  2. #2
    Walker England's Avatar
    Walker England is offline DailyFX Course Instructor
    Join Date
    Jan 2009
    Posts
    928
    Quote Originally Posted by Florence Wen View Post
    Hi everyone,
    I have a demo account and have a question for how to calculate Gross Profit and Loss.
    For example, I enter 5K for a long position of USD/CAD, the open price is 1.05557, close at 1.05524, then P/L would be -3.3, the Gross P/L would be -1.65 (5x3.3x0.1), however, the Gross Profit & Loss column on my screen shows -1.56.
    I understand that may be there are some administration fees apply, but don't know how to apply and the percentage, or the other reasons that I don't get the right figure. Can someone explain?

    Thanks!

    Florence
    Great question! It is a question of Pip cost. Since the pair you are trading is based in CAD every pip gained or lost, will not be valued at .1 . The Cad has a lower value relative to the USD . Your current pip cost on CAD pairs is .94 .So your calculation should go as follows .

    -3.3 (pips lost) x 5(lots) x .094( pip cost) = -$1.56 .

    Pip cost can be found for all pairs in the simple dealing rates window. If you have further concerns please let me know.

    Walker

  3. #3
    qnqinfo is offline Member
    Join Date
    Nov 2009
    Posts
    33

    How to get pips lost and pip cost?

    How to get pips lost and pip cost from PositionReport?

  4. #4
    Florence Wen is offline Registered User
    Join Date
    Dec 2009
    Posts
    2

    Gross Profit & Loss

    Thank you for your explanation, it's very clear, excellent!
    But I don't know how did you get the pip cost (0.094) for USD/CAD. I get 0.09 from the simple rate dealing window. For the example of our previous discussion, then there is a small difference: -3.3x5x0.09=-1.49 (compare with -1.56); if the other factors are higer (trading amount & gain/loss pips), then it'll be more difference.

    Here is the other example of my trade today:
    Enter 6k of short position, open at 1.05569, close at 1.06154
    Gross P/L = 6x(-58.5)x0.09=-31.59; but the Gross P/L column shows -33.07.

    If I use the pip cost of 0.094, the Gross P/L =-32.99 will be almost the same.

    Can you let me know how did you get the pip cost of 0.094 for the pair of USD/CAD.

    Thank you for take your time.

    Florence

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.