Definition of Profit
The positive financial gain from a closed trade. Calculated as the difference between the entry and exit prices, multiplied by the position size, minus any costs (spread, commission, swap).
At a glance
Term
Profit
URL slug
profit
Category
General
Short answer
The positive financial gain from a closed trade.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Profit” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Profit” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Profit” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
The positive financial gain from a closed trade.
Knowing the precise definition of “Profit” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Profit” as loose slang while your broker/platform specification defines it more narrowly.