{"id":17861,"date":"2019-09-06T08:38:33","date_gmt":"2019-09-06T07:38:33","guid":{"rendered":"https:\/\/traders-paradise.com\/?p=17861"},"modified":"2021-10-12T12:25:44","modified_gmt":"2021-10-12T11:25:44","slug":"how-to-calculate-the-loss-and-profit","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/09\/how-to-calculate-the-loss-and-profit\/","title":{"rendered":"How to Calculate the Loss and Profit"},"content":{"rendered":"

2 min read<\/em><\/p>\n

(Updated October 2021)<\/em><\/p>\n

\"How<\/p>\n

It is always useful to discover the percentage rise or drop. That is called profit and loss.
\n<\/span>To calculate profit and loss we have to make clear some terms involved in the calculation.<\/span><\/p>\n

We will use the stock<\/a> as an example.\u00a0<\/span><\/p>\n

* Cost Price<\/strong> ( CP): The price at which you buy a stock is the cost price. That is the amount paid for purchasing stock.<\/span><\/p>\n

* Selling price<\/strong> (SP): The Price at which you sell a stock is the sales price. That is the amount received when a stock is sold.<\/span><\/p>\n

* Profit<\/strong> (also the gain): You get a profit when you sell a stock at a price higher than its cost price. You will like to sell your stock at a higher price. CP < SP\u00a0<\/span><\/p>\n

* Loss<\/strong>: If you sell a stock at a price lower than buying price, then you caught a loss.\u00a0<\/span>CP > SP\u00a0<\/span><\/p>\n

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