Learning path · Lesson 4 of 8
Lesson 4 of 8
In this lesson
- Calculate a virtual win and loss
- Distinguish gross return from net profit
- Understand a break-even rate
Returned amount and net profit are different
For a standard winning platform trade, net profit equals stake multiplied by the quoted payout percentage. The total returned to the account includes both the original stake and that profit.
With a $100 virtual stake and an 85% payout, a win produces $85 net profit and returns $185. A loss returns $0 and produces a $100 loss. The percentage is a quoted return for a winning outcome, not a probability of winning.
Follow the balance through an example
Start from $10,000 in virtual funds. A $100 stake reserves $100 when the order is placed. If it wins at 85%, $185 is credited back and the settled balance becomes $10,085. If it loses, the settled balance becomes $9,900.
This example assumes one standard trade, the stated payout and no other balance changes. The terminal’s actual ticket and final history are the records to check for a specific order.
A 50% win rate can still produce a loss
One $100 win at 85% adds $85, while one $100 loss removes $100. Together they lose $15, even though half the trades won. Counting wins without considering payout and stake size can be misleading.
With a constant stake, a constant payout and only full wins or full losses, the theoretical break-even win rate is 100 divided by (1 + payout percentage / 100). At 85% it is about 54.05%, before rounding or other costs. This is arithmetic, not an achievable or predicted win rate.
Compare examples before increasing complexity
Use the practice calculator in Educational World to change only the virtual stake or payout. Compare a winning and losing outcome, then explain why the amounts differ.
A few successful examples do not establish a reliable strategy. Real outcomes can differ from a practice session. Keep the focus on understanding the arithmetic and the amount exposed to loss.
Try the virtual payout calculatorYour demo exercise
Try this at your own pace
- Try $100 and 85% in the practice calculator.
- Compare the total returned with net profit for a win.
- Explain the combined result of one win and one loss at the same stake and payout.
Select Demo Account before following any trading exercise.
Independent reading
Put it into words
Check your understanding
Answer all 3 questions to check the lesson. You can review your answers and try again.