Trading Position Calculator
A forex profit calculator is a tool that helps traders accurately determine the amount of profit or loss any particular trade will make when the stop loss or take profit is hit. Profit in forex trading is dependent on lot size as well as the entry and exit prices. By accurately projecting the potential profits or losses, the forex profit calculator helps traders to plan their trades efficiently with full information on their potential risks and rewards. Additionally, the calculator can help traders to utilise the right position sizes for their trades.
As a trader, knowing how to manage your risk is crucial. When trading in volatile markets, it is important to consider the potential profits, losses and costs to trading. The Friedberg Direct Calculator will provide you with all of these risks of your next trade before you execute it.
Open a CFD trading account at Friedberg Direct and trade with complete peace of mind!
How to use Forex Calculator:
- Enter the instrument you wish to trade
- Set your account currency
- Add the preferred leverage
- Decide whether to buy or sell
- Finally, select the platform you are trading on
The calculation outcome will allow you decide if or when to open and or your position, the margin requirement, the spread,
swaps and other essential info.
Calculate my Next Position:
Why Use a Trading Calculator?
Trading calculators are very handy resources for traders. There are numerous types of Forex calculators, with some of them designed to help traders boost their trading strategies (Fibonacci calculator, Forex Volatility calculator, and Pivot Points calculator), while others are meant to aid in risk management (Profit calculator, Pip calculator, and Drawdown calculator). Trading calculators are useful to all types of traders because they can help in filtering out the best assets to trade as well as in determining important parameters and metrics that are necessary for planning and executing good trades in the market.
Trading calculators also help traders to stick to their trading plans throughout their entire trading activity (opening, managing, and closing trades). They help in developing and maintaining discipline and accountability - important qualities required for any trader to become consistently successful.
Overall, successful trading can be about making the right decisions at the right time. Trading calculators ensure that decision-making is streamlined by enabling real-time trading calculations based on real-time prices of underlying assets. Trading calculators are easily available online for free, with most of them web-based and user-friendly. They can be conveniently accessed on all types of web browsers, whether desktop or mobile.
Trading Calculator FAQ
- Why do I need a trading calculator?
To be completely honest you do not need a trading calculator. If you can compute all your open positions and the proper trading levels by hand then you are free to do this at any time. However, the trading calculator is a tool that can save you a significant amount of time as it calculates margins, profit and loss, swap values, and pip values instantly. The time saved by using this calculator can be put to far better use in analysing your next trade.
- Can I use the trading calculator to calculate the risk in each trade?
While the trading calculator does not give you an objective measure of risk, it can calculate a number of data points that will let you know what your risk in each trade is. For example, you can use the trading calculator to determine your position sizing and your risk/reward ratio for any trade. Both of these pieces of information are very helpful in determining how much risk you are taking on with a specific trade. You can also calculate the value of each pip in your trade, which is critically important to know your potential profits and losses.
- How are profits calculated on my forex trades?
In any open trades you have you will see the profit or loss listed, which is the real-time mark to market value of the trade. You can close the trade at any time and this is the profit or loss you can expect. However, you might want to know at what value you will make ‘x’ amount of profit, and for that you need a forex calculator (unless you want to do the calculations by hand). In honesty the calculation itself is quite straightforward as it is simply the position size multiplied by the number of pips movement in the position. So, if you want to know how much profit (or loss) comes from a 20 pip move you can easily do so with the forex calculator. It will even calculate the value of each pip in those pairs where the USD is not the quote currency.
These FAQs, comments/analysis do not take into consideration your individual personal circumstances and trading objectives. Therefore, they should not be considered as a personal recommendation or investment advice. They are intended for educational purposes only. Past performance is not indicative of future results. There is no guarantee that the contents or instructions will result in profits or not result in losses.