To calculate profits or losses in pips, you need to determine the difference between the entry and exit price of a trade. For long trades, if the exit price is higher than the entry price, the difference in pips is your profit. For short trades, if the exit price is lower than the entry price, the difference in pips is your profit. Conversely, if the exit price is lower than the entry price for long trades or higher for short trades, the difference represents your loss.