30 Dec

How is profit calculated?

Profit is calculated slightly different depending on the commodity. It’s really one of the biggest reasons that makes paper trading on papertrademe.com so enjoyable. We take the monotony out of calculating your profit or loss.

Here’s an example on how to calculate the profit or loss of Corn.

Formula

Ticks * Tick value * number of contracts.

Let’s say you entered a long contract of March corn at the trading price of 400.25 and few days later you exited that contract at 401.25. We know that one tick is 0.25 and it each tick is worth $12.50 in profit or loss. Therefore, the total profit for this trade would be $50.

4 ticks X $12.50 *1 contract = $50

There are tools out there to make these calculations a bit easier, like this one here.

But still, an even easier way would be to paper trade with papertrademe.com. We do all the calculations for you AND keep track of your trades.

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