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# Thread: Gross Profit & Loss Calculation

1. Registered User
Join Date
Dec 2009
Posts
2

## 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. Originally Posted by Florence Wen
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. 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. 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

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