Enter the maximum loss ($) and the spread width ($) into the calculator to determine the Probability of Profit. 

Probability of Profit Formula

The following formula is used to calculate the Probability of Profit. 

PoP = ML / SW * 100 

  • Where PoP is the Probability of Profit (%)
  • ML is the maximum loss ($) 
  • SW is the spread width ($) 

How to Calculate Probability of Profit?

The following example problems outline how to calculate Probability of Profit.

Example Problem #1:

  1. First, determine the maximum loss ($). In this example, the maximum loss ($) is given as 60.
  2. Next, determine the spread width ($). For this problem, the spread width ($) is given as 100.
  3. Finally, calculate the Probability of Profit using the equation above: 

PoP = ML / SW * 100 

The values given above are inserted into the equation below:

PoP = 60 / 100 * 100  = 60 (%)


Example Problem #2: 

The variables needed for this problem are provided below:

maximum loss ($) = 75

spread width ($) = 200

Entering these values and solving gives:

PoP = 75 / 200 * 100  = 37.5 (%)