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 ($) • SW is the spread width ($)

To calculate the probability of profit, divide the maximum loss by 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 (%)