How to calculate profits and losses (MODUL 4-2)

Assume you buy Euros at $1.2178 per Euro and sell Euros at $1.2188 per Euro. The transaction size is 100,000 Euros. To calculate your profit or loss, you take the selling price of $1.2188, subtract the buying price of $1.2178 and multiply the difference by the transaction size of 100,000.

($1.2188 – 1.2178) X 100,000 = $100

In this example, you would have a $100 profit from this transaction.