How to Calculate CFD Profit and Loss 2026: Pip Value, Lot Size and Risk-Reward Examples
Before you place a single CFD trade, you should be able to answer one question: how much will I make or lose if the market moves exactly as I expect — or the opposite? If you cannot calculate the answer in your head, you are trading blind.
This 2026 guide walks through the complete arithmetic of CFD profit and loss, starting with the fundamental formula, moving through pip values for every major asset class, and ending with a step-by-step position-sizing method that keeps every trade within your risk budget. It also shows how UZFX contract specifications translate into real dollar amounts.
For background, read our risk management strategies guide, our forex position sizing guide, and the complete CFD trading guide.
The fundamental profit and loss formula
Every CFD trade follows the same core equation:
Profit or Loss = (Exit Price − Entry Price) × Position Size × Point Value
Three inputs drive the result:
- Price difference. The number of points, pips or percentage change between entry and exit.
- Position size. How many lots, contracts or units you hold.
- Point value. The dollar (or quote-currency) value of one point of price movement on your position size.
Change any one of these three and the profit or loss changes proportionally. The rest of this guide explains how each one is determined.
Step 1: Understand lot sizes
CFD lot sizes are standardised per asset class. A “1 lot” position on gold means something completely different from “1 lot” on EUR/USD.
| Asset class | Standard lot | Mini lot | Micro lot | UZFX minimum |
|---|---|---|---|---|
| Forex | 100,000 units | 10,000 units | 1,000 units | 0.01 lot (1,000 units) |
| Gold (XAU/USD) | 100 troy oz | 10 troy oz | 1 troy oz | 0.01 lot |
| Indices (US500, NAS100) | 1 contract | — | — | 0.01 contract |
| Stocks (AAPL, TSLA) | 100 shares | 10 shares | 1 share | 0.01 contract |
| Crypto (BTC, ETH) | 1 coin | 0.1 coin | 0.01 coin | 0.01 lot |
UZFX’s 0.01-lot minimum on every instrument means a trader with a $10 account can risk a fraction of a dollar on a single pip move. The $10 minimum deposit (updated 17 July 2026) was introduced to make live practice accessible.
Step 2: Calculate pip value
Pip value depends on the instrument and the currency in which it is quoted. Here are the most common cases:
Forex pip value
For currency pairs where the quote currency is USD (EUR/USD, GBP/USD, USD/CAD, AUD/USD, NZD/USD):
Pip value = 1 pip × Lot size in units ÷ Exchange rate
For a standard lot (100,000 units) of EUR/USD at 1.1000:
Pip value = 0.0001 × 100,000 ÷ 1.1000 = $9.09 per pip
For simplicity, most traders approximate this as $10 per pip on a standard lot.
| Lot size | Approx. pip value (USD pairs) |
|---|---|
| 1.00 lot (standard) | $10 |
| 0.10 lot (mini) | $1 |
| 0.01 lot (micro) | $0.10 |
For pairs where the quote currency is not USD (EUR/JPY, GBP/JPY), the pip value is calculated in JPY and then converted to USD. For crosses (EUR/GBP, GBP/CHF), the pip value is calculated in the quote currency and converted at the prevailing rate.
Gold (XAU/USD) pip value
Gold is quoted to two decimal places. A 0.01 move on XAU/USD is the smallest pip. On a standard lot (100 troy oz):
Pip value = 0.01 × 100 = $1 per point
| Lot size | Pip value (XAU/USD, per 0.01 move) |
|---|---|
| 1.00 lot | $1 |
| 0.10 lot | $0.10 |
| 0.01 lot | $0.01 |
A 50-point move on 1 lot of gold = 50 × $1 = $50 profit or loss.
Index CFD pip value
Index CFDs like US500 (S&P 500), NAS100 and DE40 are typically quoted in whole points. On a standard lot (1 contract):
Pip value = 1 point × Contract multiplier
For US500, the standard multiplier is 1×, so 1 point = $1 per contract. For NAS100, the multiplier is also 1×. Always verify the current contract specification on the UZFX Web Terminal.
| Lot size | Pip value (US500, per 1 point) |
|---|---|
| 1.00 contract | $1 |
| 0.10 contract | $0.10 |
| 0.01 contract | $0.01 |
Crypto CFD pip value
Crypto CFDs on UZFX (BTC/USD, ETH/USD, SOL/USD, XRP/USD) are quoted in USD. The pip value equals the contract size:
Pip value = 1 USD move × Contract size in coins
For 1 lot of BTC/USD (1 coin), a $10 move = 10 × 1 = $10 profit or loss.
| Lot size | Pip value (BTC/USD, per $1 move) |
|---|---|
| 1.00 lot (1 coin) | $1 |
| 0.10 lot (0.1 coin) | $0.10 |
| 0.01 lot (0.01 coin) | $0.01 |
Step 3: Work through a complete example
Scenario: You open a long position on EUR/USD at 1.1000 on the UZFX Web Terminal. Your account balance is $10,000. You risk 1% ($100) and set a stop-loss at 1.0950 (50 pips away). Your take-profit target is 1.1100 (100 pips away).
Step-by-step calculation
1. Risk per trade:
$10,000 × 1% = $100
2. Stop distance in pips:
1.1000 − 1.0950 = 0.0050 = 50 pips
3. Pip value on 1 standard lot:
≈ $10 per pip
4. Position size:
Position size = $100 ÷ (50 pips × $10/pip) = 0.20 lots
5. If the stop is hit:
Profit/Loss = (1.0950 − 1.1000) × 0.20 × 100,000 × 0.0001 = −$100
6. If the take-profit is hit:
Profit/Loss = (1.1100 − 1.1000) × 0.20 × 100,000 × 0.0001 = +$200
7. Risk-reward ratio:
Reward ÷ Risk = $200 ÷ $100 = 1:2
This trade risks $100 to make $200. Even with a 40% win rate, the strategy is profitable over time because each win is twice as large as each loss.
Step 4: The risk-reward ratio
The risk-reward ratio is the relationship between your stop-loss distance and your take-profit distance, expressed as a ratio.
| Risk-reward ratio | Win rate needed for break-even |
|---|---|
| 1:1 | 50% |
| 1:2 | 33% |
| 1:3 | 25% |
| 1:5 | 17% |
A trader with a 1:3 risk-reward ratio only needs to be right 25% of the time to break even. This is why risk-reward is often more important than win rate.
How to set a risk-reward ratio
- Identify your entry level based on your technical or fundamental analysis.
- Set your stop-loss based on market structure — below a swing low for longs, above a swing high for shorts.
- Measure the distance from entry to stop.
- Choose your risk-reward target (1:2 or 1:3 is a common starting point).
- Set your take-profit at the distance that achieves your target ratio.
If the required take-profit is beyond the next major resistance or support level, the setup does not meet your criteria. Skip the trade.
Step 5: Calculate required margin
Margin is the collateral reserved for a position. It is not a fee and it is not the maximum you can lose.
Required margin = Position value × Margin rate
On UZFX, the margin schedule is tiered by instrument and volume. For major forex pairs, the reference rate starts at $200 per lot for 0.01–30 lots, rising to $300 per lot for 30–100 lots. Gold uses a different tier structure: $400 per lot for 0.01–2 lots, $1,000 for 2–5 lots, and $2,000 for 5–100 lots.
Example: 0.20 lots of EUR/USD at $200/lot margin:
Required margin = 0.20 × $200 = $40
Your $40 margin is reserved while the position is open. It is returned when the position closes, minus any loss or plus any profit.
Margin level and free margin
Margin level = Equity ÷ Used margin × 100
Free margin = Equity − Used margin
If your equity is $1,000 and your used margin is $40, your margin level is 2,500%. You have $960 in free margin available for new trades or to absorb losses.
A falling margin level triggers a warning, then a stop-out (forced liquidation) if it reaches the broker’s threshold. See our CFD margin call and stop-out guide for details.
Practical position-sizing checklist
Before every CFD trade, run through this sequence:
- What is my account equity? (e.g., $10,000)
- What percentage am I willing to risk? (e.g., 1% = $100)
- Where is my stop-loss? (e.g., 50 pips away)
- What is the pip value on 1 lot? (e.g., $10 for EUR/USD)
- Calculate position size: Risk ÷ (Stop distance × Pip value) = 0.20 lots
- Check required margin: 0.20 lots × $200 = $40 — well within free margin
- Set take-profit at your target risk-reward ratio: 100 pips for a 1:2 ratio
- Verify the trade meets your criteria: Entry, stop, target, and margin all align
If any step fails, do not take the trade.
CFD profit and loss on UZFX
UZFX’s $10 minimum deposit and 0.01-lot minimum on every instrument make it one of the most accessible platforms for practicing position sizing with real money. The ASIC-regulated entity operates under AFSL 001291473, which you can verify on the ASIC professional registers.
Key contract specifications on UZFX:
| Instrument | Standard lot | Pip value (approx.) | Minimum lot | Minimum deposit |
|---|---|---|---|---|
| EUR/USD | 100,000 units | $10/pip | 0.01 lot | $10 |
| XAU/USD | 100 troy oz | $1/point | 0.01 lot | $10 |
| US500 | 1 contract | $1/point | 0.01 contract | $10 |
| BTC/USD | 1 coin | $1/$1 move | 0.01 lot | $10 |
All positions are executed through the UZFX Web Terminal, H5 mobile web app, or native iOS, Android, Windows and Mac applications. There is no MT4 or MT5 on UZFX, but every order type and position-sizing calculation works identically across all platforms.
Internal links and further reading
- CFD order types explained 2026
- Risk management strategies for CFD trading
- Forex position sizing and lot size guide
- Overnight swap fees explained 2026
- UZFX 2026 review
FAQ
Can I calculate profit and loss in the UZFX platform?
Yes. The UZFX Web Terminal displays real-time profit/loss on every open position. It also shows the breakeven price, stop-loss level and take-profit level. For pending orders, the terminal shows the estimated margin requirement before you confirm the order.
Does leverage change my profit and loss calculation?
Leverage changes the margin required to open a position, not the profit or loss per pip. A 1:500 leverage setting on a $10,000 account lets you control $5,000,000 in notional exposure, but the pip value on 1 lot of EUR/USD is still $10. The profit or loss formula is unchanged.
What happens if the market gaps through my stop-loss?
A stop-loss becomes a market order once the trigger is hit. If the market gaps — for example, from 1.0955 to 1.0940 overnight — your stop at 1.0950 will execute at 1.0940, resulting in a larger loss than planned. This is called slippage. For tighter control during gap-prone events, consider a stop-limit order.
How do I handle currency conversion for non-USD pairs?
If you trade a pair like EUR/GBP and your account is in USD, the profit or loss is calculated in GBP and then converted to USD at the prevailing GBP/USD rate. The UZFX platform handles this conversion automatically. The pip value table in this guide uses approximate USD figures for simplicity.
Is the pip value the same on demo and live accounts?
Yes. The pip value depends on the instrument contract specification, not on whether the account is demo or live. The UZFX demo account uses the same contract specifications as the live account, so position-sizing calculations transfer directly.
Risk Disclaimer
Trading CFDs, forex, metals, energies, indices, stocks and cryptocurrencies involves substantial risk and may not be suitable for all investors. Leverage can magnify both gains and losses. The profit and loss figures in this guide are illustrative examples only and do not guarantee future results. Past performance is not indicative of future results. Always verify current contract specifications, margin requirements and pip values with the relevant broker before opening a position. Never trade money you cannot afford to lose.
Recommended Broker: Visit UZFX Official Website