How is floating profit and loss calculated?
Quick answer
Floating, or unrealised, profit and loss is what an open position would make or lose if closed now. It equals the price difference between entry and the current closing price, multiplied by the position size and contract size, then converted into the account currency. Equity is balance plus floating profit and loss.
Detailed answer
The calculation uses the price the position would actually close at: the bid for a long position, the ask for a short one.
The formula
Floating P&L = (current closing price − entry price) × lots × contract size, for a long position. For a short position the sign reverses. If the instrument is quoted in a currency other than the account's, the result is converted at the current rate.
Worked examples
- EUR/USD long: 1 lot bought at 1.08500, bid now 1.08800. The difference is 0.00300 × 100,000 = $300 profit.
- Gold short: 0.5 lots sold at 2,350.00, ask now 2,356.00. The difference is −6.00 × 100 ounces × 0.5 = −$300.
- GER40 long: 1 contract bought at 18,000, bid now 18,050. That is 50 points × €1 = €50, converted to dollars at the EUR/USD rate.
Why it matters for prop rules
Equity-based loss limits include floating losses. A trader can breach without closing a trade, because the open loss pushes equity through the floor. Traders sometimes think only closed trades count; your rules page should say clearly that they do not.
PropExecutor recalculates each account's floating profit and loss on every price tick, converts instruments quoted in other currencies (for example GER40 in euros or JP225 in yen) into the account currency, and shows balance, equity and floating P&L live in the terminal.
PropExecutor team · Updated
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