How do I calculate my transaction's profit or loss?
To calculate your profit or loss for a Long trade, please use the following formula:
PL = S * L * ( Ec / Eo – 1 ) – C , where:
PL is your profit or loss
S is your investment amount
L is the leverage value used
Ec is the close price
Eo is the open price
C is commission charged for your transaction
To calculate your profit or loss for a Short trade, please use the following formula:
PL = S * M * ( 1- Ec / EO) – C
Let's assume you open a long Dow Jones trade worth $1,000 at 15,345 with leverage set at 10 and close it at 15,515. Your transaction fee is $1.70, and the rollover fee is -$3.80.
So we get: 1,000 * 10 * ( 15,515 / 15,345 – 1) – 1.70 – 3.80 = $105.28.
Your transaction profit is $105.28.
Now let's assume we open an identical short trade:
1,000 * 10 * (1 – 15,515 / 15,345) – 1.70 – 0.20 = -$112.68
Here, your loss would be $112.68.