CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The vast majority of retail investor accounts lose money when trading CFDs.
76.09% of retail investor accounts lose money when trading CFDs with this provider.

# How do I calculate the P/L (profit or loss) for my trades?

Below we will look at how to calculate profit and loss for both closed trades, and open trades. We will show you the formulas you will need to use, including some examples down below. Before we begin, it is important to remember the following factors about the formulas you will be using:

• For a BUY position, the open rate is the Ask price, and the close rate is the Bid price
• For a SELL position, the open rate is the Bid price and the close rate is the Ask price

## P/L Calculation for trades that are closed

In order to calculate the loss or profit for trades that are CLOSED, follow the below formula:

• BUY Trade: (Close rate – Open rate) * Nominal Value = P/L
• SELL Trade: (Open rate – Close rate) * Nominal Value = P/L

## P/L Calculation for trades that are open

If the trade is still OPEN, you will need to apply the same formula, however, instead of the close rate, you will need to either use the current bid price if it is a BUY position or the current ask price if it is a SELL position. In order to calculate the loss or profit for trades that are OPEN, follow the below formula:

• BUY Trade: (Current rate – Open rate) X Nominal Value = P/L
• SELL Trade: (Open rate – Current rate) X Nominal Value = P/L
Note:
Please remember that depending on the base currency of your account, you will have to apply an exchange rate to convert the P/L. Our Customers are able to use the currency exchange calculator in the Client Portal area for accurate calculations!

## Example Calculations

Based on the formulas above, below are two examples to help you with your calculations. Let us say, for example, that the current exchange rate for EUR/USD is as follows:

• Bid price: 1.00165