1. What is Forex Resell Profit?

Forex resell profit represents the financial gain obtained from buying and selling currency pairs in the foreign exchange market. It's calculated based on the price difference, trade volume, and pip value.

2. How Does the Calculator Work?

The calculator uses the forex profit formula:

Where:

• \( \text{Sell Price} \) — Price at which the currency is sold
• \( \text{Buy Price} \) — Price at which the currency is bought
• \( \text{Lot Size} \) — Number of units traded
• \( \text{Pip Value} \) — Value of one pip movement in the base currency

Explanation: The formula calculates the profit by multiplying the price difference by the trade volume and pip value, providing the total profit in the base currency.

3. Importance of Profit Calculation

Details: Accurate profit calculation is crucial for risk management, trade evaluation, and strategic planning in forex trading. It helps traders assess potential returns and make informed trading decisions.

4. Using the Calculator

Tips: Enter sell price, buy price, lot size, and pip value. All values must be positive numbers with lot size and pip value greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is a pip in forex trading?
A: A pip (percentage in point) is the smallest price movement in a currency pair, typically 0.0001 for most pairs.

Q2: How is pip value determined?
A: Pip value depends on the currency pair, trade size, and exchange rate. It represents the monetary value of a one-pip movement.

Q3: What is standard lot size in forex?
A: A standard lot is 100,000 units of the base currency. Mini lots are 10,000 units and micro lots are 1,000 units.

Q4: Can this calculator be used for any currency pair?
A: Yes, as long as you input the correct pip value for the specific currency pair you're trading.

Q5: Does this calculation include trading costs?
A: No, this calculation provides gross profit. For net profit, you need to subtract spreads, commissions, and other trading costs.