Inquiry Regarding Stop Loss and Take Profit Formulas in cTrader

PanagiotisCharalampous
03 May 2024, 14:57

Hi there,

There is no formula for Price and Balance. They are fixed values. Regarding the rest

Pips: (Entry Price - Bid/Ask Price) / Pip Size 

P&L: (Volume * (Entry Price - Bid/Ask Price)) - (Commissions + Swaps)

Best regards,

Panagiotis

Saad_D
06 May 2024, 12:01 ( Updated at: 07 May 2024, 05:53 )

RE: Inquiry Regarding Stop Loss and Take Profit Formulas in cTrader

PanagiotisCharalampous said: 

Hi there,

There is no formula for Price and Balance. They are fixed values. Regarding the rest

Pips: (Entry Price - Bid/Ask Price) / Pip Size 

P&L: (Volume * (Entry Price - Bid/Ask Price)) - (Commissions + Swaps)

Best regards,

Panagiotis

Thank you for your response. However, it did not address my specific query regarding the calculation of Stop Loss and Take Profit values in the input fields before opening a position. I am seeking clarification on how the Entry Price is determined.

In your previous response, you provided the formula for P&L calculation as: (𝑉𝑜𝑙𝑢𝑚𝑒×(𝐸𝑛𝑡𝑟𝑦𝑃𝑟𝑖𝑐𝑒−𝐵𝑖𝑑/𝐴𝑠𝑘𝑃𝑟𝑖𝑐𝑒))−(𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠+𝑆𝑤𝑎𝑝𝑠)(Volume×(EntryPrice−Bid/AskPrice))−(Commissions+Swaps)

If the Entry Price is the same as the Bid/Ask Price (for example, 3152), and considering a Volume of 1 with Commissions and Swaps as 0, the result would be: 1×3152−3152−(0+0)=00×3152−3152−(0+0)=0 This result appears to be incorrect.

I am specifically inquiring about the functionality within Spotware's cTrader, as shown in the attached screenshot. How are these calculations interconnected? For instance, if I enter 100 pips, how is the price formulated as 64517.05, when my current price is 64528.600? Additionally, could you provide detailed documentation on these calculations?

Your assistance in clarifying these points would be greatly appreciated. Thank you.

PanagiotisCharalampous
07 May 2024, 06:19

RE: RE: Inquiry Regarding Stop Loss and Take Profit Formulas in cTrader

Saad_D said: 

PanagiotisCharalampous said: 

Hi there,

There is no formula for Price and Balance. They are fixed values. Regarding the rest

Pips: (Entry Price - Bid/Ask Price) / Pip Size 

P&L: (Volume * (Entry Price - Bid/Ask Price)) - (Commissions + Swaps)

Best regards,

Panagiotis

Thank you for your response. However, it did not address my specific query regarding the calculation of Stop Loss and Take Profit values in the input fields before opening a position. I am seeking clarification on how the Entry Price is determined.

In your previous response, you provided the formula for P&L calculation as: (𝑉𝑜𝑙𝑢𝑚𝑒×(𝐸𝑛𝑡𝑟𝑦𝑃𝑟𝑖𝑐𝑒−𝐵𝑖𝑑/𝐴𝑠𝑘𝑃𝑟𝑖𝑐𝑒))−(𝐶𝑜𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠+𝑆𝑤𝑎𝑝𝑠)(Volume×(EntryPrice−Bid/AskPrice))−(Commissions+Swaps)

If the Entry Price is the same as the Bid/Ask Price (for example, 3152), and considering a Volume of 1 with Commissions and Swaps as 0, the result would be: 1×3152−3152−(0+0)=00×3152−3152−(0+0)=0 This result appears to be incorrect.

I am specifically inquiring about the functionality within Spotware's cTrader, as shown in the attached screenshot. How are these calculations interconnected? For instance, if I enter 100 pips, how is the price formulated as 64517.05, when my current price is 64528.600? Additionally, could you provide detailed documentation on these calculations?

Your assistance in clarifying these points would be greatly appreciated. Thank you.

 

Hi there,

If the Entry Price is the same as the Bid/Ask Price (for example, 3152), and considering a Volume of 1 with Commissions and Swaps as 0, the result would be: 1×3152−3152−(0+0)=00×3152−3152−(0+0)=0 This result appears to be incorrect.

I do not understand what you are trying to highlight here. Obviously when the market price is at the same level as the position's entry price, then the P&L is 0. So the calculation is correct. If you replace the Bid/Ask price with the TP/SL price then you will find the P&L at the TP/SL level.

For instance, if I enter 100 pips, how is the price formulated as 64517.05, when my current price is 64528.600?

If you are asking how are SL/TP prices estimated, then it is just Entry Price +/- (SL/TP pips * Pip Size)

Additionally, could you provide detailed documentation on these calculations?

There is no documentation for this since this is not cTrader specific information. It is straightforward algebra and it works the same way no matter which platform you use.

Best regards,

Panagiotis