TRADING GLOSSARY
Profit factor
Profit factor is total profit from winning trades divided by the absolute total loss from losing trades over a defined sample. A value above one means recorded profits exceed recorded losses, but interpretation depends on cost treatment and sample quality.
EXAMPLE
In a hypothetical trade record with costs included, winning trades total $900 and losing trades total $600 in losses. Profit factor is $900 ÷ $600 = 1.5.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure