Profit/Loss = (SELL value - BUY value) * Contract size * Base currency unit
Base currency unit = Base currency conversion rate in $ (given your account is maintained in $)
First we will calculate on basis of 1 standard lot. 1 standard lot is a contract of 100,000 EUR/USD. The base unit is USD, so the equivalent is $100,000.
Profit: Buy EUR/USD at 1.3360. Sell at 1.3427. Base currency same as Account.
profit in pips = 1.3427 - 1.3360 = 0.0067 = 67 pips. (since pip = 1/10,000 = 0.0001 for base currency USD)
Profit = (1.3427 - 1.3360) * ($100,000) * $1 = $ 670.00
Loss: Sell GBP/JPY at 143.19. Buy at 144.42. Base currency different from Account.
loss in pips = 143.19 - 144.42 = -1.23 = 123 pips (since pip = 1/100 = 0.01 for base currency JPY)
Loss = (143.19 - 144.42) * ($100,000) * (JPYUSD contract value)
JPYUSD contract value will fluctuate throughout the day. Lets suppose USDJPY is 90.00
Therefore, Loss = (143.19 - 144.42) * ($100,000) * $(1/90.00) = -$1366.67
in case your account is maintained in EUR;
Loss = (143.19 - 144.42) * ($100,000) * (JPYEUR contract value) = (143.19 - 144.42) * ($100,000) * €(1/125.00) = - €984.00
Next, lets come to mini-lots. Contract value is 10,000 in this case.
You can figure out easily, the profit/loss is one-tenth of that calculated in the above cases.
To sum it up, your profit/loss is a direct multiple of your contract size and your profit/loss in pips. It is not dependent on your margin or the leverage you are using. When you have a position open with a floating loss, such a situation is called a "draw-down". Hence, you should have enough funds in your account to handle a draw-down and prevent a margin-call(same as in stocks and commodities). This is the primary reason - to prevent a margin call - why you should never risk more than 2-5% of your account funds as margin requirement. More on this later!
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