How to Calculate Forex Profit & Loss
Whether checking a closed trade or an open position, the P&L formula is the same simple arithmetic — here's exactly how to apply it.
Long: (close price − open price) × units. Short: (open price − close price) × units. Convert the result to your account currency using the pair's exchange rate.
Long vs short — the sign flips
A long (buy) position profits when price rises, so profit = (close − open) × units. A short (sell) position profits when price falls, so the subtraction order flips: profit = (open − close) × units. Getting this backwards is the most common manual-calculation mistake.
Worked example
Long 1 standard lot EUR/USD, opened at 1.0800, closed at 1.0850, USD account: (1.0850 − 1.0800) × 100,000 = $500 profit. The same move on a short position (opened 1.0850, closed 1.0800) also nets +$500, since a short profits from the price falling.
Try Free Web Tools Mentioned in This Guide
Frequently Asked Questions
Can I check an open (unrealized) position's P&L?↓
Yes — use the current market price as the 'close price' to see your unrealized profit or loss at this moment.
Does this account for spread or commission?↓
No, this is the raw price-movement P&L. Subtract any commission separately (see the Commission Calculator) for your true net result.