Forex Dictionary Terms

Profit

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Definition – What does Profit mean?

Profit refers to the the gains made on a trade. In currency trading, profit is most commonly expressed as a number of pips, but it can also be stated as a percentage or dollar amount.

ForexTerms explains Profit

Simply put, profit is the goal of every forex trader. A trade becomes profitable when the price action on a currency pair moves in the direction that a trader wants. For example, a trader profits on a short position when the shorted currency falls in value compared to its counterpart. While it is highly unlikely that a trader will profit on every trade, the goal of most traders is to profit consistently and lose seldom.

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