What is Forex Calculator?
One of the convenient and effective tools for a trader is a Forex calculator. It minimizes the risks of miscalculations and facilitates the participants’ task, eliminating the need to make calculations of the spread, swap, pip value, margin, and other indicators manually.
Forex calculator is a trading tool that allows to calculate Forex key indicators. This is one of the ways to optimize the activities of a trader, saving time and improving the accuracy and efficiency of the process.
Simply select the type of trading account, as well as the account currency, lot, type of leverage and trading instrument. Clicking on the “calculate” button will allow you to see the result. Since the program takes into account all the necessary parameters, the calculator is convenient and easy to use.
Varieties of Forex Trading Calculators
Everyone wants to know before opening a position how profitable it can be and how much profit it will bring to the trader. There are many types of tools that can help to estimate this and among the most common Forex trading calculators, the following should be noted:
- pivot points
- Fibonacci (forecast of prices of currency pairs) and others.
It is recommended to download the calculator from the official website of the broker with which the trader works, although there are many free and paid versions of these calculators available on the web.
- Forex Lot Calculator
Even traders who had only A’s in math in school already forgot the formulas and secrets of quick calculations. However, it is important to be able to quickly calculate the percentage of deposit that is acceptable for risk. Using a calculator, the size of the trading lot is calculated very quickly.
Compliance with the level of risk, currency pair and stop-loss is guaranteed. Official broker websites often contain not only links to the downloads or online access to the respective programs, but also offer video tutorials instructing how to use the tool.
- Forex Risk Calculator
Calculation of risk in the form of the largest possible loss that can be caused as a result of opening a position at the moment is best performed using a special calculator. The results can be obtained both in monetary and in percentage terms.
The calculators can be adjusted, including its visual parameters. Such an indicator can calculate an absolutely correct value even in the most difficult conditions.
- Forex Pip Calculator
The pip is an important concept in the financial market because it shows a change in the price vector and the minimum step for this. It is in pips that the losses or profits of the trader are determined.
The complexity of the calculation lies in the factors affecting the value, type of account, the volume of the transaction, the selected currency pair. Therefore, manual calculation is difficult. An item cost calculator is the best option for those who value their time. Beginners who do not have the necessary skills and knowledge to calculate the pip value can also safely use this tool.
- Forex Profit Calculator
In order to receive good money on Forex, it is important to conduct a good analysis with the help of Forex trading calculators. One of them is a profit calculator. It is important to understand the economic situation and, in its context, the possible amount of profit and the degree of its likelihood in conducting each specific trade operation.
The basis is the currency quotation that is most suitable for the trader. The trader fills in special fields in the calculator and selects a purchase or sale for a specific amount. This is a simulation of the situation, which results in the trader’s understanding of whether he or she will make a profit or be at loss.
- Forex Margin Calculator
Margin significantly affects the trading account of the trader. The higher the safety margin, the more profit the trader expects to make. However, the understanding of this concept does not come immediately for beginners – experience is needed. The margin calculator easily determines the size that is needed to open or maintain a base position.
What Can I Calculate with Forex Calculators?
As you can see from the list of available calculators, the Forex calculator is indispensable trader’s tool for calculating the amount of margin, profit, potential risks, etc. With its help, the pip value is calculated based on the current exchange rate.
For those who trade a large number of currency pairs, the calculator allows to save a large amount of time. In addition, this is the most accurate method of carrying out all the necessary calculations because automatic calculation in a fraction of a second provides accurate and error-free results.
Each broker offers its own version of this calculation tool. They may differ slightly in interface and some parameters but are identical in functionality.
In the financial market, the efficiency of calculations and the speed of decision making are important. It may be necessary or desired to open a position momentarily. The functioning of the Forex calculator online allows you to have uninterrupted access to this calculation tool. This, in turn, makes it possible to keep a finger on the pulse of the Forex market and at any time with maximum accuracy and without much effort to obtain the desired information.
As it was mentioned before, another big and noticeable advantage of the Forex trading calculator is that when using it, the trader does not need to keep in mind or write down on paper large lists of mathematical formulas for each of the currency pairs.
Forex calculator is a practical tool that is useful for both beginners and professionals in financial markets. With the help of the trading calculator, traders can calculate the parameters of transactions, choose the most effective trading strategies and make the best decisions even before the opening of the transaction.