The formula for longs and shorts
Buy: (exit − entry) × lots × contract size
Sell: (entry − exit) × lots × contract size
Two mirrored gold examples (0.10 lots, 100 oz contract):
| Trade | Entry | Exit | Result |
|---|---|---|---|
| Buy | 2400 | 2410 | +$100 |
| Sell | 2400 | 2410 | −$100 |
Same move, opposite outcomes — direction is part of the formula. See long and short positions.
What gets deducted from the result
Your net result is always below the gross. The three deductions:
- The spread: paid implicitly at entry.
- Commission: on some account types.
- Swap: on positions held overnight — it matters most to swing traders.
Use this alongside the pip calculator and the position-size calculator to plan the whole trade before opening it.