Profit Calculation

I am sure this is something you guys know only too well, but as a newcomer I would like to know whether I have got the right calculation?

The question is simply how do you calculate how much profit you have made on a trade?

Eg/. Entry at 1.5500, exit at 1.5750. 100 lots.

Is profit calculated as follows:

Amount per pip x amount of pips x # contracts x size of contract
(0.0001/1.5500) x 250 x 100 x 100,000 = $161,290

Thanks.

You're joking, right? Profit is the difference between what you started with and what you end up with.

Is it a full moon or something?

Dopey I am aware obviously that this is clear by your starting and closing balance at the open and close of the trade, but I am interested in the calculation behind it?

What I am asking basically, is whether the above calculation is actually the calculation used to work out the profit.

I guess what I am getting at is calculating potential profit at certain levels prior to the trade being entered. Let me add that this is in no way so that I can say: "Wow look how much I could make if I traded 100 contracts, etc etc".

Thanks.

Ok, in that case your way is one way of doing it.

Would you mind letting me know the other ways?

Making a profit is not an easy task in the forex market. You need to be very expert and educated to make profit from this market.

the trading profit calculation is a very tough game , because there is nothing 100% in this trading place and any calculation not works 100%.

It is never possible to make a 100% profit in trading. Need to take some losses. However, if some profit is targeted monthly, then the calculation is possible. In this case, money management and risk management strategy should be used properly. And if you do calculations by compounding, the matter will become easier.

I think making money in forex is easy if you have proper knowledge and experience. Without knowledge, it is quite tough to survive in this risky market.