How do I calculate profits and losses?

How do I calculate profits and losses?

When you close out a trade, you can calculate your profits and
losses using the following formula:

Price (exchange rate) when selling the base currency – price
when buying the base currency X transaction size = profit
or loss

Assume you buy Euros (EUR/USD) at 1.2178 and sell Euros at
1.2188. If the transaction size is 100,000 Euros, you will have a
$100 profit.

($1.2188 – $1.2178) X 100,000 = $.001 X 100,000 = $100

Similarly, if you sell Euros (EUR/USD) at 1.2170 and buy Euros
at 1.2180, you will have a $100 loss.

($1.2170 – $1.2180) X 100,000 = – $.001 X 100,000 = – $100

You can also calculate your unrealized profits and losses on open
positions. Just substitute the current bid or ask rate for the action
you will take when closing out the position. For example, if you
bought Euros at 1.2178 and the current bid rate is 1.2173, you
have an unrealized loss of $50.

($1.2173 – $1.2178) X 100,000 = – $.0005 X 100,000 = – $50

Similarly, if you sold Euros at 1.2170 and the current ask rate is
1.2165, you have an unrealized profit of $50.

($1.2170 – $1.2165) X 100,000 = $.0005 X 100,000 = $50

If the quote currency is not in US dollars, you will have to convert the
profit or loss to US dollars at the dealer’s rate. Further, if
the dealer charges commissions or other fees, you must subtract
those commissions and fees from your profits and add them to
your losses to determine your true profits and losses.