How do I calculate my transaction's profit or loss?
To calculate your profit or loss for a Long trade, please use the following formula:
PL = S * M * ( Ec / E0 – 1 ) – C , where:
PL is your profit or loss
S is your investment amount
M is the multiplier value in use
Ec is the close price
Ec is the open price
C is commission charged for your transaction
To calculate your profit or loss for a Short trade, please use the following formula:
PL = S * M * ( 1- Ec / E0) – C
In case your current loss on a transaction reaches 100% (or 80% for stocks) of your investment amount, your transaction is subject to immediate closure. This is to ensure that your maximum risk is limited with your investment amount, i.e. your transaction will not affect your funds that are not invested in it.
Let's assume you have opened a long Dow Jones trade worth EUR 1,000 with multiplier at 10, at 15,345 and closed it at 15,515, your transaction fee being EUR 1.70, and the rollover fee at - EUR 3.80.
Thus, what we get is: 1,000 * 10 * ( 15,515 / 15,345 – 1) – 1.70 – 3.80 = 105.28.
Your transaction profit is EUR 105.28.
Now let's assume we open an identical trade, but a short one:
1,000 * 10 * (1 – 15,515 / 15,345) – 1.70 – 0.20 = -112.68
Here, your loss would be EUR 112.68.