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Profit/loss calculation

CALCULATIONS FOR FOREX
In this chapter, we will explain calculation methods that are relevant to Sovereign TS clients only, as different Forex brokers may use different lot sizes.

Calculating Profit & Loss
In the table below, you find a summary of all currency pairs that are traded at Sovereign TS , the lot size of each currency pair and an approximate value of each pip per lot:

Symbol	Item Name	Lot size 1	Pip value per lot
EURUSD	Euro vs US Dollar	100,000 Euro	10.00 USD
GBPUSD	British Pound vs US Dollar	100,000 GBP	10.00 USD
USDJPY	US Dollar vs Japanese Yen	100,000 USD	1000 JPY / Price of USDJPY - approx 9.00 USD
USDCHF	US Dollar vs Swiss Franc	100,000 USD	10 CHF / Price of USDCHF - approx 7.80 USD
AUDUSD	Australian Dollar vs US Dollar	100,000 AUD	10.00 USD
USDCAD	UD Dollar vs Canadian dollar	100,000 USD	10 CAD / Price of USDCAD - approx 8.20 USD
NZDUSD	New Zealand Dollar vs US Dollar	100,000 NZD	10.00 USD
EURJPY	Euro vs Japanese Yen	100,000 EUR	1000 JPY / Price of USDJPY - approx 9.00 USD
EURGBP	Euro vs British Pound	100,000 EUR	10 GBP / Price of USDGBP - approx 18.10 USD
EURCHF	Euro vs Swiss Franc	100,000 EUR	10 CHF / Price of USDCHF - approx 7.80 USD
EURCAD	Euro vs Canadian Dollar	100,000 EUR	10 CAD / Price of USDCAD - approx 8.20 USD
EURAUD	Euro vs Australian Dollar	100,000 EUR	10 AUD / Price of USDAUD - approx 7.60 USD
GBPJPY	British Pound vs Japanese Yen	100,000 GBP	1000 JPY / Price of USDJPY - approx 9.00 USD
GBPCHF	British Pound vs Swiss Franc	100,000 GBP	10 CHF / Price of USDCHF - approx 7.80 USD
CHFJPY	Swiss Franc vs Japanese Yen	100,000 CHF	1000 JPY / Price of USDJPY - approx 9.00 USD
AUDCAD	Australian Dollar vs Canadian dollar	100,000 AUD	10 CAD / Price of USDCAD - approx 8.20 USD
AUDJPY	Australian Dollar vs Japanese Yen	100,000 AUD	1000 JPY / Price of USDJPY - approx 9.00 USD
AUDNZD	Australian Dollar vs New Zealand Dollar	100,000 AUD	10 NZD / Price of USDNZD - approx 7.00 USD
CADJPY	Canadian Dollar vs Japanese Yen	100,000 CAD	1000 JPY / Price of USDJPY - approx 9.00 USD
NZDJPY	New Zealand Dollar vs Japanese Yen	100,000 NZD	1000 JPY / Price of USDJPY - approx 9.00 USD
XAUUSD	Spot Gold	100 OZ	100 USD per dollar movement in price (ex. From 423.00 to 424.00 per ounce) per lot.
XAGUSD	Spot Silver	5000 OZ	50 USD per cent movement in price (ex. From 5.03 to 5.04 per ounce) per lot.

Examples:

1. Sold 3 lots of EURUSD at 1.2175 and bought them at 1.2110
In this example, the client made 65 pips * 3 lots = 195 pips in total profit (as he sold at a higher price than he bought). The pip value for EURUSD is 10 USD, so the total profit =195 pips * 10 USD per pip = 1950 USD.

2. Bought 2 lots of USDJPY at 105.60 and sold them at 105.20
In this example, the client made 40 pips * 2 lots = 80 pips in total loss (as he sold at a lower price than he bought). The pip value for USDJPY is 1000 JPY and this equals 1000 / 105.20 (price of USDJPY when the position was closed) = 9.506 USD approximately, and so the client total loss = 80 pips * 9.506 USD per pip = 760.46 USD.

3. Sold 2 lots of EURGBP at 0.7015 and bought them at 0.6940
In this example, the client made 75 pips * 2 LOTS = 150 pips in total profit. The pip value for EURGBP is 10 GBP and this equals 10 * 1.8500 (assuming the price of GBPUSD was 1.8500 when the position was closed) = 18.50 USD, and so the total profit is 150 pips * 18.50 USD per pip = 2775 USD.

4. Sold 3 lots of gold at 435.50 and bought them at 432.10
In this example, the client made 3.4 USD per ounce * 3 lots * 100 ounces (lot size for gold) = 1020 USD in total profit.

5. Bought 2 lots of silver at 7.03 and sold them at 6.99
In this example, the client made 0.04 USD per ounce * 2 lots * 5000 ounces (lot size for silver) = 400 USD in total loss.

CUSTOMER SERVICE

	Tel. +41 22 747 7831 Fax +41 22 747 7999

Conversor

Currency Converter

European Service Desk 18, Avenue Louis-Casaï, 1209 Geneva, Switzerland

Telephone +41 22 747 7831 - Fax +41 22 747 7999 - customer@sovereignts.com