# How do I calculate the profit and loss of a position in Forex?

To calculate the profit or loss of a position:

Profit = (Closing Price – Opening Price) * Volume

SELL Positions

Profit = (Opening Price – Closing Price) * Volume

Keep in mind that the profit is calculated on the quote currency, and you will need to multiply the exchange rate between the quote currency of the traded pair and the account base currency.

Example 1:

Account Currency: USD

Opening Price: 1.14000

Closing Price: 1.14500

Volume: 100,000

Exchange rate to USD = 1

Profit = (1.1450 – 1.1400) * 100,000 = 500 USD

Example 2:

Account Currency: USD

Opening Price: 1.3400

Closing Price: 1.3380

Volume: 10,000

Exchange rate CAD to USD: 0.747

Profit = (1.3400 – 1.3380) *100,000 = 200 CAD

Profit = 200 * 0.747 = 149.4 USD

Example 3:

Account Currency: USD

Opening Price: 1.0250

Closing Price: 1.0210

Volume: 100,000

Exchange rate NZD to USD: 0.6920

Profit = (1.0210 – 1.0250) * 100,000 =  -400.00 NZD (Loss)

Profit = 400 * 0.6920 = -276.8 USD (Loss)