<p>Marginal Profit, also known as incremental profit, is the additional profit generated by investing one more unit of a resource. It's a key concept in economics and trading, helping traders understand the diminishing returns of additional investments.</p>

<h2>How It Works</h2>
<p>Marginal Profit is calculated as the change in total profit divided by the change in the quantity of a resource. It's a measure of how much extra profit is made by using one more unit of a resource. The formula is:</p>
<p><strong>Marginal Profit</strong> = (ΔTotal Profit) / (ΔQuantity of Resource)</p>
<p>For example, if investing $100 in a trade generates a profit of $20, and investing an additional $100 generates a profit of $30, the marginal profit would be:</p>
<p>Marginal Profit = ($30 - $20) / ($100 - $100) = $10 / $100 = $0.10</p>

<h2>Why It Matters for Traders</h2>
<p>Understanding marginal profit is crucial for traders as it helps in:</p>
<ul>
<li>Making informed decisions about adding more capital to a trade or opening new positions.</li>
<li>Identifying the point of diminishing returns, where adding more capital doesn't significantly increase profits.</li>
<li>Assessing the risk-reward ratio. If the marginal profit is low, it might not be worth the risk.</li>
</ul>
<p>On the <strong>MetaTrader 5</strong> platform, traders can use the built-in tools to track their profits and losses, helping them calculate marginal profit and make better trading decisions.</p>

<h2>Example</h2>
<p>Let's say a trader has a trading account with STB Provider, with a leverage of up to 1:300. The trader initially invests $1,000 in EUR/USD, generating a profit of $50. If the trader then adds another $500 to the trade, the profit increases to $150. The marginal profit in this case would be:</p>
<p>Marginal Profit = ($150 - $50) / ($500 - $1,000) = $100 / -$500 = -$0.20</p>
<p>This negative marginal profit indicates that the additional investment did not generate a profit, highlighting the importance of understanding marginal profit in trading decisions.</p>

<h2>Key Takeaways</h2>
<ul>
<li>Marginal Profit is the additional profit generated by investing one more unit of a resource.</li>
<li>It's calculated as the change in total profit divided by the change in the quantity of a resource.</li>
<li>Understanding marginal profit helps traders make informed decisions about adding capital to trades.</li>
<li>Traders can use the tools on platforms like MetaTrader 5 to track their profits and losses and calculate marginal profit.</li>
</ul>