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Profit/Loss Calculator

Calculate potential profits or losses before placing a trade. Analyze risk-reward ratios to make informed decisions.

Trade Details

Standard lot = 100,000 units
Your planned entry price
Price where you'll exit if trade goes against you
Target price to close with profit

Results

Enter your trade details and click "Calculate" to see potential profit/loss

Risk Management Guidelines

Understanding Risk/Reward Ratios

1:1 or Less

Poor risk/reward. You need to win more than 50% of trades to be profitable. Not recommended for beginners.

1:1.5 to 1:2

Acceptable risk/reward. With a 1:2 ratio, you only need to win 33% of trades to break even.

1:3 or Higher

Excellent risk/reward. You can be profitable winning only 25% of trades. Ideal for trend following strategies.

Win Rate vs Risk/Reward

The table below shows the minimum win rate needed to be profitable at different risk/reward ratios:

Risk/Reward Ratio Minimum Win Rate Profitable Win Rate
1:1 50% > 50%
1:1.5 40% > 40%
1:2 33.3% > 35%
1:3 25% > 30%
1:4 20% > 25%