How to calculate profit for metals, oil, indices trades not in pips
I get confused with my profit and loss because metals, oil, indices are in ticks / points
Besides trading currency pairs, our students also use Tflow® Forex Strategy to trade metals Gold and Silver as well as Oil and Indices.
Gold, Silver & Oil are especially popular. However the calculation for their movement and profit are slightly different since their movement is expressed in ticks or points. See tables below.
Calculating ticks for Gold, Silver & Oil
|PAIR||START PRICE||END PRICE||TICKS|
|Gold (XAUUSD)||1330.00||moves to||1330.10||=||1 tick|
|Silver (XAGUSD)||21.000||moves to||21.010||=||2 ticks|
|Oil (WTI)||101.00||moves to||101.01||=||1 tick|
Calculating profit for Gold, Silver & Oil
|Contract Size||Start Price||End Price||Profit|
|Gold (XAUUSD)||Micro (0.01)||1330.00||moves 1 tick to||1330.10||USD0.10|
|Mini (0.10)||1330.00||moves 1 tick to||1330.10||USD1.00|
|Standard (1.00)||1330.00||moves 1 tick to||1330.10||USD10.00|
|Silver (XAGUSD)||Micro (0.01)||21.000||moves 2 ticks to||21.010||USD0.50|
|Mini (0.10)||21.000||moves 2 ticks to||21.010||USD5.00|
|Standard (1.00)||21.000||moves 2 ticks to||21.010||USD50.00|
|Oil (WTI)||Micro (0.01)||101.00||moves 10 ticks to||101.10||USD1.00|
|Mini (0.10)||101.00||moves 10 ticks to||101.10||USD10.00|
|Standard (1.00)||101.00||moves 10 ticks to||101.10||USD100.00|
We also trade stock market indices. For stock market indices, movement will be measured in points instead of pips. Although there are a number of indices we trade, the calculation are the same. Table below shows two examples.
Stock Indices points & profit calculation
|Contract Size||Start Price||End Price||Points||Profit|
|DJ30||Min. 1 Standard||1567.00||moves to||1568.00||1 Point||USD1.00|
|FT100||Min. 1 Standard||6420.00||moves to||6421||1 Point||GBP1.00|
- Note that for indices, profit and loss is calculated in the base currency of index’s country of origin.
- HKI (Hang Seng Index) is calculated in HKD
- FT100 is calculated in GBP
- SPI is calculated in AUD
- DJ30 is calculated in USD
- S&P is calculated in USD
- DAX30 is calculated in EUR
- CAC40 is calculated in EUR
3 point guide to Gold, Silver, Oil & Indices
- Gold and Oil are 10 times the size of regular currency pairs.
- Silver is 50 times the size of regular currency pairs.
- You need a standard lot to trade indices in return for mini lot profit & loss.
Last time, many things that I wanted were just dreams, now I see them as possibilities. I’m looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+