Why look at the % and the R, not only the dollars
$60 is a lot on a $500 account and very little on a $50,000 one. The % of your balance shows what a trade really did to your account, and the R shows it against the risk you took: +2 R means you made twice what you risked, −1 R that the stop was hit. Traders who think in R and in % of the account keep their risk steady from trade to trade.
The formulas
Profit = (exit − entry) × contract size × lots for a buy, the other way round for a sell, turned into US dollars. Risk = the same sum with the stop instead of the exit. R = profit ÷ risk. Example: buy 0.20 lot of gold at 4000, sell at 4012, stop at 3994: 12 × 100 × 0.20 = $240 profit, risk $120, so +2 R, and 4.8 % of a $5,000 account.
For one-pip values and pip counts only, use the pip value calculator; to choose the lot size from your risk, use the lot size calculator.
Spreads, commissions and swaps are not included, so your broker's result will be a little lower.
Questions
What does R mean?
R is your risk on the trade: the loss if the stop is hit. A result of +2 R means a profit of twice that amount; −1 R means the full stop was lost.
Which account currency does it use?
US dollars. For pairs whose second currency is not the dollar (EUR/GBP, EUR/JPY) enter today's rate, or the pair's price for USD/xxx pairs, and the result is turned into dollars.
How much should I risk per trade?
Many traders keep it to 1 % of the account or less, so a run of losing trades does not empty the account. This calculator shows the % so you can check it.
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