# Calculating profit/loss with CFD trading

Calculations of profit or loss for CFD trades will vary depending on the transactions you open. They will be different for long and short positions. Let’s see how to estimate your profit.

## Calculations of the profit for long positions

You open a position called a long one every time you predict the price of the particular asset will increase.

The formula to calculate profit for long trades is equal to the difference between (closing price minus opening price) / opening price x multiplier x amount and the fees.

Let’s look at the example below.

The opening price of the trade was 75.401 and the closing price 75.596. The invested amount was 100 and a chosen multiplier x100. The trading fee was in the amount of 5,21.

CALCULATION:

(75,596−75,401)÷75,401×100×100−5,21 = 20,65

The trade brought a profit of 20.65.

## Calculations of the profit/loss for short positions

You open a position called a short one whenever your market analysis assumes the price of a chosen asset will fall.

The formula to calculate profit for short positions is equal to the difference between (opening price minus closing price) / opening price x multiplier x amount and the fees.

In the example above the invested amount in the trade was 100, a multiplier is chosen x20 and there were two different fees taken. The trading fee in the amount of 4.59, and the overnight commission in the amount of 0.78. The opening price was 192.12 and the closing price 194.14.

The calculations will look like this:

(192,12−194,14)÷192,12×20×100−4,59−0,78 = -26,40

This time the trade has ended up in a loss of 26.40 so it wasn’t a successful prediction for the Facebook stock price.

This is how the profit or loss in CFD trading is calculated on the Olymp Trade platform. If you are interested in trading CFDs, I encourage you to read our guide on trading CFDs.

Good luck!

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