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Lesson

Calculating position Profit/loss in MetaTrader 4

There are no net positions in MetaTrader 4, and trades are classified as opening and closing trades. Opening trades are displayed as separate positions, regardless of the fact that their net amount is equal to 0. In the examples below, you can see that the final result (profit/loss) is the same with the one in other types of platforms.

Example 1 *

Trade Amount (lots) ** Opening Price Market Price Unrealised Profit/Loss Realised Profit/Loss Account Balance *** Account Equity (Current Balance)
Trade 1 Buy 0.1 1.1400 1.1400 0 0 $10,000 $10,000

Trade 1: You buy 0.1 lot (10,000 units) EUR/USD with an opening trade at a market price of 1.1400. Both the account balance and equity are equal to 10,000 USD.

*The examples are given without considering the difference in the spread and the funds used as margin.

**1 lot in MetaTrader 4 is equal to 100,000 units of the base currency – so in this case you are buying 10,000 EUR (0.1 lots) and selling 11,400 USD. Please be advised that in our Delta Trading platform, 1 lot equals 1,000 units of the base currency, not 100,000.

***„Account Balance” is the sum available in the account, without considering the floating profit/loss from open positions. Account Equity (Current Balance) is the sum available in the account, considering the floating profit/loss from open positions.

Trade Amount (lots) Opening Price Market Price Unrealised Profit/Loss Realised Profit/Loss Account Balance Account Equity (Current Balance)
Trade 1 Buy 0.1 1.1400 1.1300 -100 0 $10,000 $9,900
Trade 2 Buy 0.1 1.1300 1.1300 0 0 $10,000 $9,900

Trade 2: You buy 0.1 lots with another opening trade at a market price of 1.1300.

When the market price changes from 1.1400 to 1.1300, you lose 100 USD from Trade 1

The account balance is 10,000 USD, but the equity is 9,900 USD.

Trade Amount (lots) Opening Price Market Price Unrealised Profit/Loss Realised Profit/Loss Account Balance Account Equity (Current Balance)
Trade 1 Buy 0.1 1.1400 1.1450 50 0 $10,000 $10,050
Trade 2 Buy 0.1 1.1300 1.1450 150 0 $10,000 $10,200
Trade 3 Sell -0.1 1.1450 1.1450 0 0 $10,000 $10,200

Trade 3: You sell 0.1 lots with an opening trade at a market price of 1.1450.

When the market price changes to 1.1450, you make a 50 USD profit from Trade 1 and 150 USD from Trade 2.

The account balance is 10,000 USD, but the equity is 10,200 USD.

Trade Amount (lots) Opening Price Market Price Unrealised Profit/Loss Realised Profit/Loss Account Balance Account Equity (Current Balance)
Trade 1 Buy 0.1 1.1400 1.1350 -50 0 $10,000 $9,950
Trade 2 Buy 0.1 1.1300 1.1350 50 0 $10,000 $10,000 
Trade 3 Sell -0.1 1.1450 1.1350 100 0 $10,000 $10,100
Trade 4 Sell -0.1 1.1350 1.1350 0 0 $10,000 $10,100

Trade 1 was placed at a market price of 1.1400, Trade 2 – at 1.1300, and Trade 3 – at 1.1450.

When the price changes to 1.1350, you lose 50 USD from Trade 1, but you make a 50 USD profit from Trade 2 and 100 more from Trade 3.

Trade 4: You sell 0.1 lots with an opening trade at 1.1350, which is not reflected neither in the account balance nor the equity.

Your account balance is 10,000 USD, but the equity is 10,100 USD – and it will remain the same regardless of market movements, as your net position is 0.

Example 2 (opening and closing trades)

Trade Amount (lots) Opening Price Market Price Unrealised Profit/Loss Realised Profit/Loss Account Balance Account Equity (Current Balance)
Trade 1 Buy 0.1 1.1400 1.1450 50 0 $10,000 $10,050
Trade 2 Buy 0.1 1.1300 1.1450 150 0 $10,000 $10,200

Trade 1: You buy 0.1 lots with an opening trade at a market price of 1.1400.

Trade 2: You buy 0.1 lots with an opening trade at a market price of 1.1300.

When the market price changes to 1.1450, you make 50 USD profit from Trade 1and 100 USD from Trade 2, both of which are reflected in the account equity. The account balance is 10,000 USD, but the equity is 10,200 USD.

Trade Amount (lots) Opening Price Market Price/Closing Price Unrealised Profit/Loss Realised Profit/Loss Account Balance Account Equity (Current Balance)
Trade 3/(closes Trade 1) Sell -0.1 1.1400 1.1450 (Closing Price) 0 50 $10,000 $10,050
Trade 2 Buy 0.1 1.1300 1.1450 150 0 $10,050 $10,200 

You close the position from Trade 1 (opening price of 1.1400) with a closing order (Trade 3) at a market price of 1.1450. You have a realised profit/loss of 50 USD, which is reflected in your account balance (10,050 USD), and unrealised profit/loss of 150 USD from Trade 2, which is reflected only in the equity (10,200 USD).

Trade Amount (lots) Opening Price Market Price/Closing Price Unrealised Profit/Loss Realised Profit/Loss Account Balance Account Equity (Current Balance)
Trade 4 (closes Trade 2) Sell -0.1 1.1300 1.1350 (Closing Price) 0 50 $10,100 $10,100

You close the position from Trade 2 (opening price of 1.1300) with Trade 4 at a market price of 1.1350 – and you have a realised profit/loss of 50 USD more, which is reflected in the account balance (10,100 USD) and the equity (10,100 USD).


Note: Views expressed here are for education purposes only and are not the views of Deltastock or its employees. These views are not personal recommendations or investment advice. Any quotes of financial instruments displayed on this page are indicative only and do not reflect the current market situation. You may wish to seek independent advice before entering into transactions.