XAU/USD (Gold CFD) is trading at 1205.80 (sell price) / 1206.20 (buy price)
You decided to invest in 100 oz. of Gold CFD as you are expecting the price will go up.
Your pip value in this example will be 0.01 x 100 (trade size) = $ 1
Example 1: Winning Trade
You were correct with your prediction and the price of Gold CFD goes up to 1224.50 / 1224.90, you decide to close your winning trade by selling at 1224.50 (current sell price)
The price of Gold CFD went up 1830 pips (1224.50 – 1206.20) in your favor.
Your profit is ( [1224.50– 1206.20] x 1 $ pip value) = $1830
Example 2: Losing Trade
Your prediction was wrong and price of Gold CFD dropped over the next hours to 1187.90 / 1188.30, you assume that the drop will continue and decide to close the trade at 1187.90 (current sell price) to limit your losses.
The price of Gold CFD dropped 1830 pips (1206.20 – 1187.90) against you.
Your loss is ([1206.20 - 1187.90] – x -1 $ pip value) = - $1830
Please note, profit and loss amounts given in the examples don’t include FX calculation charges, commissions (depends on account type) and overnight swap charges (may be credited or debited to your account depending on trade).
For further detailed calculations, please consult your personal account manager.