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Sunday, July 22, 2007

How to Calculate Profit and Loss

Sunday, July 22, 2007

The equation for EUR/USD, GBP/USD, and AUD/USD is as follows:

P/L = (Opening Rate - Closing Rate) x Lot Size x Number of Lots

The equation for USD/JPY, USD/CHF and USD/CAD is as follows:

P/L = (Opening Rate - Closing Rate) / Closing Rate x Lot Size x Number of Lots

For standard account, 1 pip results $10 profit/loss in EUR/USD and GBP/USD, approximately $9 in USD/JPY, $8 in USD/CHF.

For mini account, 1 pip result $1 profit/loss in EUR/USD and GBP/USD, approximately $0.9 in USD/JPY, $0.8 in USD/CHF.

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