# How to calculate forex percentage gain or loss?

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Forex trading is a popular and lucrative form of trading. Forex traders buy and sell currencies in order to make a profit. One of the most important aspects of forex trading is understanding how to calculate percentage gain or loss. This is crucial for assessing the performance of your trades and making informed decisions about future trades.

In this article, we will provide an in-depth guide on how to calculate forex percentage gain or loss.

### What is Percentage Gain or Loss?

Percentage gain or loss is the amount of profit or loss expressed as a percentage of the initial investment. In forex trading, it represents the change in the value of a currency pair from the time it was bought to the time it was sold.

### Calculating Percentage Gain or Loss

To calculate percentage gain or loss, you need to know the initial investment, the current value of the investment, and the time period over which the investment was held. Here’s how to calculate it:

### Percentage Gain or Loss = (Current Value – Initial Investment) / Initial Investment x 100

For example, if you bought 1000 euros at a rate of 1.20 USD/EUR and sold them at a rate of 1.25 USD/EUR, your percentage gain would be:

### This means that you made a profit of 4.17% on your initial investment of 1000 euros.

On the other hand, if you bought 1000 euros at a rate of 1.20 USD/EUR and sold them at a rate of 1.15 USD/EUR, your percentage loss would be: