LESSON 05 ~11 MIN · AT YOUR OWN PACE
How does a trade work?
Brokers, Buy/Sell, Bid/Ask, Orders and trading costs.
STEP 4 OF 4
Gross Profit and Net Profit
Gross Profit comes from price and quantity. Net Profit is what is left after costs such as commission, spread, financing and any tax that applies are taken off. Not every product has every cost.
AN EXAMPLE
With 10 shares and a gain of 2 per share, you have 20 gross. With total fees of 6, 14 is left, before tax. If you use the actual filled prices, do not count the spread twice.
RememberBefore you confirm an order, read the quantity, the product and the costs.
Sources and further reading
Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.
Investor.gov · Order types (opens in a new tab)CFTC · Forex and risk (opens in a new tab)