**How to calculate the profit/loss for a trade?**

To calculate the profit/loss for a trade, you would first need to calculate the Pip Value for your trade. The Pip Value refers to the profit/loss you would be making per pip movement. This can be calculated using the formula below:

**Pip Value = Contract Size x Lot Size x Size of Pip in Decimal Places **

- The contract size can be found in the instrument specifications on MetaTrader
- The lot size is the volume chosen for your trade
- The size of pip is the location of the pip in the price of the instrument, for example, for EURUSD, the size of pip would be 0.0001 (Since a pip is the second smallest measure of change in the price)

You can then calculate the profit/loss by multiplying the Pip Value by the pip movement of the trade. The pip movement is calculated using the formulas below:

**Pip movement for long positions = (Close price - Open price) / Size of Pip**

**Pip movement for short positions = (Open price - Close price) / Size of Pip**

For example, if you open a 1 lot long on EURUSD at 1.10051 and close it at 1.10351, your Pip Value would be the following:

**Pip Value = 100,000 x 1 x 0.0001 = 10**

**Pip Movement = (1.10351 - 1.10051) / 0.0001 = 30**

**Profit/Loss = 10 x 30 = 300 USD**

Please keep in mind that the result of this formula will always be given in terms of **Quote Currency**, you will then need to convert this to your account's set currency.

For example, if you work out the margin required to open a **EURJPY** trade, you will need to convert the result from **JPY** to your account's set currency.

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