{"id":12223,"date":"2023-01-25T18:03:42","date_gmt":"2023-01-25T15:03:42","guid":{"rendered":"https:\/\/www.robomarkets.com\/blog\/?p=12223"},"modified":"2023-10-12T10:32:28","modified_gmt":"2023-10-12T07:32:28","slug":"how-to-calculate-gain-and-loss-on-stock-in-long-position","status":"publish","type":"post","link":"https:\/\/www.robomarkets.com.cy\/blog\/education\/how-to-calculate-gain-and-loss-on-stock-in-long-position\/","title":{"rendered":"How to Calculate Gain and Loss on Stock in Long Positions"},"content":{"rendered":"\n

In today's article, we will explain what gain and loss on a stock investment are, and how they can be calculated in percent. We will also try to formulate why they're so important and share the calculation formula and examples with you. Finally, we will list factors that influence gain and loss.<\/p>\n\n\n\n

<\/span>Determining gain and loss<\/span><\/h2>\n\n\n\n

Gain is an increase in the stock price<\/a> compared to its purchase price. In other words, a gain arises when the stock price becomes higher than the price for which the stock has been bought. For example, an investor purchased stock for 20 USD and with time the price increased to 25 USD. In this case, the investor's gain is 5 USD, excluding the broker<\/a>'s commission and taxes.<\/p>\n\n\n\n

Loss is a decrease in the stock price compared to its purchase price. It forms when the stock price becomes lower than the price for which the stock has been bought. For example, an investor purchased stock for 20 USD, and with time the price fell to 15 USD. In this case, the investor's loss is 5 USD, broker's commission and taxes excluded.<\/p>\n\n\n\n

By estimating gaining and losing positions, an investor can realise if their trading strategy is successful or needs some corrections.<\/p>\n\n\n\n

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<\/span>Calculating gain and loss in percent<\/span><\/h2>\n\n\n\n

To calculate gain\/loss in percent, let's use the formula:<\/p>\n\n\n\n

(A - B) \/ B * 100<\/strong><\/p>\n\n\n\n

Where:<\/p>\n\n\n\n