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How to Calculate Foreign Exchange Loss

Posted by at 12:39 AM Read our previous post

1. Determine the total price of the currency when you executed the trade. Let's say you sell 100,000 euro at EUR/US .9517. The calculation is: 100,000 EUR * 0.9517= 95,170.00 USD.
2. Determine the price decrease. Let's say that after you trade, the price of euro drops, and you sell at EUR/USD=0.9500. The transaction is: 100,000 EUR *0.9505= 95,050.00 USD.
3. Calculate the loss. The loss is the difference between the purchase and selling price. The calculation is: 95,170.00-95,050.00=120.00 USD.

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