Calculating forex profit

[yani1985]

On the stock market, it works like this: Apple trades 55 million shares per day, profit per share: 0.01, so if you multiply this, you get 500,000 in profit per day. Correct me if I'm wrong. How do I calculate this in forex?


This is the answer I got from ChatGPT:


For example, in EUR/USD (Euro/Dollar), the daily trading volume is 600 billion, and the price is, for example, 2. Now, you divide 600 billion by the price, and you get 300 billion units per day. You then divide this amount by 1 lot, which is 100,000. The result of this calculation, 3 million, is then multiplied by the number of pips per day, for example, 20. Since 1 pip per lot = 10, you multiply 3 million by 20, which means the daily profit, if all trades are successful, just like in the previous example (Apple shares), is 600 million.


Is this correct? Please help me.

 

[Latham]

Your calculation isn't entirely accurate because forex trading differs from stock trading. In forex, volume is measured in currency value, not shares. Also, daily pip movement varies, and not all trades are profitable. Profit depends on leverage, lot size, and strategy. A more precise approach considers spread, margin, and execution efficiency in real trading conditions. LQDFX broker offers 1:1000 leverage, narrow trading spread and flexible margin level that help me maintain proper risk management in trading.

 

[yani1985]

Your calculation isn't entirely accurate because forex trading differs from stock trading. In forex, volume is measured in currency value, not shares. Also, daily pip movement varies, and not all trades are profitable. Profit depends on leverage, lot size, and strategy. A more precise approach considers spread, margin, and execution efficiency in real trading conditions. LQDFX broker offers 1:1000 leverage, narrow trading spread and flexible margin level that help me maintain proper risk management in trading.

Thank you, which formula should I use for the calculation?

 

[papaya_financial]

The explanation you received is conceptually flawed. Profit calculation in the forex market differs significantly from that of the stock market, and it’s important to clarify the key distinctions.

Here’s how it works in practice:

• One pip in a standard lot on most USD pairs is worth $10.
• If a trader opens a 1 lot position and earns 20 pips, the profit is $10 × 20 = $200.
• The number of lots you trade, the pip value per lot, and the pips gained determine your actual profit.

Market volume like EUR/USD trading $600 billion daily reflects liquidity, not profit potential for one trader. Valetax helps clarify this through its platform with accurate pip calculators, real-time spreads, and margin tools—so you trade based on your actual position size and risk, not theoretical volume.