Net Operating Profit Formula for Forex Trading

5 min read

Net operating profit formula forex is a calculation used in forex trading which enables investors to accurately gauge the financial performance and position of their trades. The formula considers all components of a trade – including the bid ask spread, entry and exit levels, cost of funds, etc. – and measures the net amount that the trader is projected to clear from their trades. This is extremely useful for traders to assess and measure their risk exposure and expected returns, and as a result, can be used as a basis for setting stop loss and target prices.