How to use the Forex calculator?
Trading calculator (also referred to as forex calculator, leverage calculator, leverage trading calculator) is a versatile tool, which may prove useful to both beginners and professionals of financial markets. Using the Trading calculator, traders have an opportunity to make online calculations of transaction parameters, choose more efficient trading strategies before opening positions. Forex calculator allows you to make the best possible decisions using the initial data on the transaction. To use the forex trade calculator, enter the available parameters and click “Calculate”.
What data does the Trading calculator require?
To use the Trading calculator, one has to enter the following initial data for a transaction:
- Choose the instrument you’re going to trade. Detailed conditions for trading every asset can be found on the “Contract specifications” page.
- Specified the number of lots.
- Choose the leverage value for your trading operations. Global Market Index Limited Calculator offers leverage values up to 1:100. Specify your account currency.
- After clicking “Calculate” on leverage calculator, you will get all parameters of your transaction.
How to read the calculation data received from the Trading calculator?
Despite the fact that working with the forex calculator is extremely simple, beginner traders, who haven’t sifted the Forex trading to the bottom, may require explanation of the calculation data they get from the Trading calculator. The information below will help you decipher and analyze the data received from the calculator (spread, pips, margin, swaps) based on the selected trading instruments.
- Server is the name of the server they use for trading at Global Market Index Limited . The server has to match the account type. More detailed information can be found in “FAQ” section.
- Contract size is an equivalent of the sum traded on the Forex market, which is calculated as a standard lot value (100,000 units of the base currency) multiplied by the number of lots specified.
- Point value (the minimum value of an asset price change), is calculated according to the following formula:
<One Point Value> = <Contract> * (<Price> + <One Point>)
- <Contract> * <Price>
where:
One Point Value is a cost of one point in the quoted currency.
Contract is a contract size in the instrument base currency.
Price is the currency pair price.
One Point is the price step (one point).
- Spread is the difference between Ask and Bid prices.
On the Forex market, traders have to pay swaps (rollovers) for having overnight positions. The swap amount depends on differences between rates of emitting Central Banks of base currencies and the instrument quoted prices, and may be either negative or positive. - Swap Short/Swap Long – Swap values in pips and the account currency.
- Margin is a type of financial collateral used by traders to cover credit risk. The margin amount depends on the contract size and the chosen leverage value. It is calculated according to the following formula:
<Margin> = <Contract Size> / <Leverage>
where:
Contract Size is a transaction volume in the base currency of the chosen trading instrument.
Leverage is the leverage value.
The Forex Trading calculator is a tool for informing traders about probable parameters of their future transactions and expenses required to maintain their positions. The data obtained in the leverage trading calculator can not be considered as a suggestion or recommendation to invest funds or an incentive for making transactions.
