Forex Pricing Model

Simulate the linear risk and reward structure of Forex trading.

Position Size (in lots): Pip Movement:

Pip Movement: 0

Profit/Loss Bar Chart

Profit/Loss Line Chart

Key Concepts

Forex trading is linear—both profits and losses are proportional to position size.
No asymmetry: Unlike options, Forex traders risk losing as much as they can gain.
High leverage increases both potential gains and losses.
No time decay or volatility edge.

Profit/Loss = Position Size × Pip Movement × Pip Value