Profit Formula:
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The Angel One Trading Calculator helps traders calculate their profit or loss from stock trades by considering the buy price, sell price, quantity of shares, and associated trading fees.
The calculator uses the profit formula:
Where:
Explanation: The formula calculates the gross profit from the price difference multiplied by quantity, then subtracts all trading fees to determine the net profit.
Details: Accurate profit calculation is essential for traders to evaluate trade performance, manage risk, and make informed trading decisions. It helps in understanding the actual returns after accounting for all costs.
Tips: Enter the buy price, sell price, quantity of shares, and total fees in dollars. All values must be valid (prices ≥ 0, quantity > 0, fees ≥ 0).
Q1: What fees should be included?
A: Include all trading commissions, brokerage fees, transaction charges, and any other costs associated with the trade.
Q2: Can this calculator handle multiple trades?
A: This calculator is designed for single trade calculations. For multiple trades, calculate each separately and sum the results.
Q3: What if the result is negative?
A: A negative result indicates a net loss on the trade rather than a profit.
Q4: Does this account for taxes?
A: No, this calculator only considers trading fees. Tax implications should be calculated separately based on your jurisdiction.
Q5: Can I use this for other trading platforms?
A: Yes, the profit calculation formula is universal and can be applied to trades from any brokerage platform.