Trading Position Calculator
Our calculator is completely online and includes a calculator of pip values, a swap calculator and a margin calculator. These are at your disposal for all transactions.
This practical calculator will help you to calculate all bases of your trading positions including margin, the benefit point, long and short swaps, as well as volume. You will find the calculator particularly useful if you have several positions open across different instruments. To start, simply choose the data relevant to your position and click on “Calculate“.
What is a Forex Profit 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.
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.
All-in-one Forex calculator
The comprehensive all-in-one calculator will allow you to calculate the margin, pip value and swaps required for the instrument to function, as well as the leverage and size of the position.
- Margin calculator
The margin calculator TradingForex.com will allow you to make the margin calculations necessary when opening and maintaining a new order. The margin calculator is fundamental, as it allows you to properly manage your orders, as well as to determine the size and the leverage of the order which shouldn’t be exceeded.
- Swap calculator
In FX trading, a swap or a rollover is the interest rate for maintaining interest positions from one day to another. The charge is based on the interest rates of the given pairs and dependant on whether the positions occupied are long or short.
- Profit / loss calculator
Before starting to trade live, each trader should know what they can earn or lose in live trading. The Profit / loss calculator is a simple tool which will show you the potential gains and losses.
- Pip calculator
The word ‘PIP’ means ‘Point in Percentage’. A pip is defined by the upwards or downwards movement of the last decimal in a price. It is the smallest amount by which a currency can change; typically, this is 0.0001. This means that if EUR/USD passes from 1.2250 to 1.2251, this increase of 0.0001 USD in the pair is a pip. When you calculate your risk, it is essential to know the value of one pip in each position in the currency in which your account is set up. Use the calculator Trading Forex Pip Pip and calculate the value of one pip.
- Currency convertor
Converting currencies using our convertor is easy, quick, reliable and precise. Note: It is a rough estimation. This tool can only calculate rough estimations; it cannot provide a precise prediction of margin calls.
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 close your position, the margin requirement, the spread, swaps and other essential info.
Calculate my Next Position:
Trading Calculator example:
The rates used by this tool function with a 5 minutes delay as opposed to the current exchange rates at any given moment. This calculator is based on the principle that no other transaction is open in your transaction account. If your account does have other open transactions, the values calculated will not take into account the reduced margin which applies.
The employed rates are comprised within the average between buyer and seller prices for each transaction. This affects the precision of the result. Risk disclosure: Before you start speculating on the exchange market, please make sure that you are aware of the risks related to speculation by leverage and that you are sufficiently educated on the matter.
Losses and profits on Forex:
You have surely already heard of pips and lots, but do you know these terms well? What is their meaning? What is a value of one pip and of one lot? If you are not sure, then read carefully the following information. To be able to trade on Forex, it is essential to master these notions.
They will allow you to calculate your profits and losses but also to correctly fix your protection stops (Stop Loss). Today, with the evolution of trading platforms, you can easily manually set up your Stop Loss, Take Profit and Breakeven.
A pip is the smallest variation unit in an exchange rate. Currency pairs are usually listed in 4 decimals
A pip corresponds to the last decimal. If EUR/USD changes from 1.4018 to 1.4019, this means that the euro has appreciated by one pip in relation to the dollar.
A pip is hence equal to 0.0001 (1pip=0.0001). By contrast, in the case of USD/JPY, the pip does not correspond to the same amount as the listing is only in two decimals in this case. Hence, one pip is equal to 0.01 (1pip=0.01) in this case.
As you’ll have understood, the amount represented by one pip depends on the currency pair. This is the basis for calculating your gains and losses on Forex. Now that you know the meaning of one pip, we can proceed to calculating its value.
The value of one PIP equals to: PIP (in decimals) / exchange rate X size of position traded.
Let’s take a look at an example:
In the case of USD/JPY, a pip is worth 0.01 when the listing is in 2 decimals.
Let’s suppose that USD/JPY is listed as 90.68 and that we are trading with a position of 100 000.
Value of one pip (JPY) = 100 000*0.01=1000 JPY
The value of one pip is always calculated in the listed currency (here JPY) to then be converted into the default currency of your account (EUR).
To determine the amount in dollars, we then need to calculate the following:
Value of one pip (USD) = 1000/90.68= 11.03 USD
To calculate the value of one pip directly in USD, use the following formula: 0.01 / 90.68 * 100 000 = 11.03 USD.
Value of one pip (EUR) = 11.03 / 1.4018 = 7.86 EUR (if EUR/USD lists as 1.4018).
Let’s take another example in EUR/USD. The smallest unit of measurement is 0.0001 since the listing is in four decimals.
Let’s suppose that EUR/USD lists as 1.4018 and that we are trading with a position of 100 000.
Value of one pip (USD) = 100 000*0.0001 = 10 USD
The value of one pip is always calculated in the listed currency (here USD) to then be converted into the default currency of your account (EUR).
To determine the amount in dollars, we then need to calculate the following:
Value of one pip (EUR) = 10/1.4018= 7.13 EUR
To calculate the value of one pip directly in EUR, use the following formula: 0.0001 / 1.4018 * 100 000 = 7.13 EUR.
The value of one pip changes depending on the exchange rate between of the given currency pair.
What is a "lot"?
On Forex, the values of positions are expressed in lots. It is the unit of investment on the market. The value of a lot, its standard size, is 100 000, though certain brokers, such as Instaforex, deal with lots of 10.000.
However, depending on the type of the account you open with your broker, you may be able to trade with amounts of positions smaller than 1000, i.e. 0.01 lot. 1000 is the minimum value of a position to trade on Forex. This may seem enormous to you – but don’t panic just yet.
In fact, the value of a lot is related to the value of a pip which, as you now know, is the smallest unit of a listing. It is therefore necessary to trade with larger position values in order to make your gains or losses significant at all. The higher the value of your position, the more you’ll be able to earn on the pip.
Let’s take an example: You decide to trade with a position of 0.1 lot (i.e. 10 000 EUR) on EUR/USD listed as 1.4018.
Value of one pip = (0.0001/1.4018) * 10 000EUR= 0.7133 EUR
This means that when EUR/USD appreciates or loses by a pip, you gain or lose depending on the direction of your position 0.7133 EUR.
As a result, you can calculate your gains or losses in advance on each trade and thus manage your risk.
You can also fix your gains or losses in the currency earned or lost on the trade (i.e. the counterpart currency) ant then exchange it again at the end of your trade into your default currency. This operation is conducted automatically by your broker on your trading account throughout the entire duration of your trading.
Example – Case study:
EUR/USD lists as 1.4018 / 1.4020. You expect the dollar to fall. So, you buy euro.
1. Your entering price is 1.4020 (buying price. 1,4018 is the selling price), given that this is the price at which the market maker is ready to sell you EUR.
2. You trade with a position of 0.1 lot, i.e. 10 000 EUR.
The value of one pip is thus: 1 USD or (0.0001/1.4020)*10000 = 0.7132 EUR;
A week later, you unwind your position. EUR/USD is listed as 1.4050/1.4052
Thus, your exit price is 1.4050, given that this is the price at which the market maker is ready to buy your EUR.
Hence, your profit is 30 pips, i.e. 30 USD in total, or 21.35 euros (30 USD / 1.4052).
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.