Net Income Formula Explained for Forex Trading

Net income in forex is calculated by subtracting all expenses, including trading commissions and other transaction costs, from total revenue. Known as the net income formula, this calculation helps traders understand how much money they have made or lost in their trading activities, as well as how much capital they need to keep their accounts funded. Most brokers provide their traders with a net income calculator that automatically subtracts all expenses from total revenue to determine the final amount of profit or loss.