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What is a Commodities Profit Calculator?
A Commodity Profit Calculator is a tool that helps traders and investors in the commodity market to calculate their potential profits or losses based on various input parameters. The calculator can provide an estimate of the profit or loss that would be realized if the commodity were bought and sold at the current market price. Commodity Profit Calculators can be a useful tool for traders and investors to make informed decisions about buying or selling commodities.
How Does a Commodities Profit Calculator Work?
A Commodity Profit Calculator works by taking into account various input parameters such as the current market price, quantity, and transaction fees. The calculator calculates the estimated revenue generated by selling the commodity and subtracts the total cost of the transaction, including any associated fees, to arrive at the estimated profit or loss. The calculated value helps traders and investors in making informed decisions about buying or selling commodities. By providing quick and accurate profit/loss estimates, Commodity Profit Calculators can be an essential tool in managing the risks associated with commodity trading. The Investous.pro commodity calculator makes the complex task of risk management much more digestible and so traders are advised to use it before they decide to put their capital at risk.
How to Calculate Profit and Loss in Commodity Trading?
Calculating profit and loss in commodity trading requires knowing the price at which you bought and sold the commodity, as well as any associated costs such as commissions and fees. To calculate profit, subtract the total cost of purchasing the commodity from the total revenue received from selling it. To calculate loss, subtract the total revenue received from selling the commodity from the total cost of purchasing it.
However, you don’t need to do these calculations manually as online brokers like Investous.pro offer a commodity calculator that does the job for you. You simply need to input the necessary information, and the calculator will provide you with the estimated profit or loss amount. This makes the process simple and convenient, allowing you to focus on making informed trading decisions.
P/L Calculation example
You bought 200 barrels of Crude Oil position at the price of 79.08. You closed the same position within the same day at the price of 80.97. Your settled P/L is 372 USD.
| Time | BID | ASK |
|---|---|---|
| 15:02:01 | 79.05 | 79.08 |
| 17:55:46 | 80.94 | 80.97 |
P/L is calculated with the following formula: ((exit price-entry price)*quantity) + fees&charges
Conclusion
In conclusion, commodity trading can be a complex and risky business, but with the help of a Commodity Profit Calculator, traders and investors can make informed decisions and manage their risks. The calculator provides quick and accurate profit/loss estimates, taking into account various input parameters such as the current market price, quantity, and transaction fees. The Investous.pro commodity calculator is an example of such a tool, and it can make the task of risk management much more digestible. By using a Commodity Profit Calculator, traders can focus on making informed decisions, without having to worry about the complexities and inaccuracies of manual calculations.
FAQs About Our Commodity Profit Calculator
See all FAQs
Is delivery of commodities available?
No, we do not offer delivery as CFDs do not entitle traders to underlying assets. CFDs allow investors to speculate on the price movements of commodities, but they do not represent ownership of those commodities. The benefits of trading commodities with CFDs are that without owning the underlying asset you can benefit from better flexibility, liquidity and lower costs.
Can I check when my CFD on Futures position will be rolled over?
To ensure that you're well-informed about your trades, you can easily locate the rollover date for each CFD by visiting its respective asset class page on the Investous.pro website. Rollover means switching to a new futures CFD contract - it can affect the underlying contract's value and expiry date. It's crucial to be mindful of the rollover date for each CFD on Futures as it can significantly impact your trading outcomes.
Can I trade with you on my mobile?
What are your trading hours?
The trading hours vary depending on the type of instrument. You may view a full list of them here: https://www.investous.pro//global-en/trading-hours.Opening or Closing times may also be altered by Investous.pro due to liquidity and risk management considerations.<
