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Forex Profit Formula:
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Forex leverage profit refers to the amplified gains (or losses) achieved by using borrowed capital (leverage) in foreign exchange trading. Octa and other brokers offer leverage to increase potential returns from small price movements.
The calculator uses the forex profit formula:
Where:
Explanation: The formula calculates the profit by multiplying the price difference by the trade size, pip value, and leverage factor.
Details: Leverage allows traders to control large positions with relatively small capital. While it can magnify profits, it also increases risk. Octa offers various leverage options depending on account type and regulations.
Tips: Enter your trade details including entry and exit prices, lot size, pip value (which varies by currency pair), and your leverage ratio. All values must be positive numbers.
Q1: What is typical leverage on Octa?
A: Octa offers leverage up to 1:500 for professional clients, with lower ratios for retail traders depending on regulations.
Q2: How does leverage affect risk?
A: Higher leverage increases both potential profits and potential losses. It's crucial to use proper risk management.
Q3: What's the difference between lot size and position size?
A: Lot size refers to standardized trade amounts (standard lot = 100,000 units), while position size is the total value of the trade.
Q4: How do I find the pip value for my currency pair?
A: Pip value depends on the currency pair and your account currency. Most trading platforms display this information.
Q5: Does this calculator account for commissions or swaps?
A: No, this calculates gross profit. For net profit, you would need to subtract commissions and other fees.