Visualizing Your Reward
Trading is not just about being right. It is about how much you make when you are right versus how much you lose when you are wrong. By projecting your profit before you enter, you can decide if a trade is actually worth the risk.
If a trade only offers a tiny profit but requires a large stop loss, it might not be worth taking even if you think the price will move in your direction. Professional traders look for setups where the potential reward is significantly higher than the potential loss. Our tool allows you to experiment with different exit points to find the best balance for your strategy.
How Profit is Calculated
Calculating profit depends on three main factors: the size of your trade, the distance the price moves, and the type of asset you are trading.
The Core Profit Logic
Profit = (Exit Price - Entry Price) × Position Size × Contract Multiplier
Note: For sell trades, the calculation is (Entry Price - Exit Price).
For Forex, the contract multiplier for a standard lot is 100,000 units. For Gold, it is 100 ounces per lot. Bitcoin is simpler because it is usually calculated on a one-to-one basis. This tool handles all these details automatically so you can focus on your analysis.
Realistic Profit Targets
Avoid Greed
It is tempting to look for trades that will double your account in a day, but these are rare and high risk. Focus on consistent, smaller wins that build up over time.
Market Structure
Place your profit targets at logical levels where the price has reacted before, rather than at random numbers. Use the calculator to see if those logical levels offer a good return.
Frequently Asked Questions
Does this calculator include broker fees?
No. This tool calculates gross profit based on price movement. To find your net profit, you must subtract any spreads, commissions, or swap fees charged by your broker.
Why does my profit change when I trade different pairs?
Profit depends on the value of a pip, which can vary across different currency pairs. This tool accounts for those differences to give you an accurate dollar amount.
What is a good reward to risk ratio?
Many professionals aim for at least a 2 to 1 ratio, meaning they stand to gain twice as much as they are willing to lose. This allows you to remain profitable even if you lose half of your trades.