You need to learn how to count your possible profit and your losses before you place the “order” on the market. Whether you use the Forex profit calculator or other tools to calculate the outcome of your order, it is better to find out the possible numbers before you start. This is a perfect opportunity to make the risky market slightly safer for your money. After you calculate everything, you can arrange the alarm setting and the loss cap.
Profits and losses affect the balance of margin you have in your trading account. You can’t ignore them since once the prices go lower or higher than you expected, the margin balance cuts, and you have a smaller amount of money available for trading. Once you enter requested data, the calculator reveals the margin, spread, point value, long or short swap, and size of the contract.
Detailed Guide
Forex calculator is one of the most user-friendly options. However, you can start with any tool as they are all simple to use. To receive the accurate numbers, you have to provide detailed information about the future order. Follow the next steps:
- Select the type of account that you are using;
- Pick the instrument of your trading;
- Decide how many lots you are going to trade;
- Pick the most appropriate leverage;
- Pick the currency that you are using or want to receive;
- Tap the bid and ask the price of the order.
Once you enter all the requested information, you can push the “Calculate” button. It will quickly calculate the possible profit considering all the variables you pick. Don’t forget that you have to repeat this procedure every time you want to place another order. The number and size of the variables may vary, and so does the result.
Accuracy of the Calculator
The calculator does not make mistakes when it comes to numbers. However, the result of any trade can’t be calculated with 100 percent accuracy. There are too many factors you have to count, including unpredictable situations, like volatility or tweets from authorities. Any unexpected news or announcements made by the government or even celebrities, like, for example, Elon Musk, can change the situation on the market. These factors can’t be calculated but must be considered as well.
Keep in mind that there are different types of accounts that require different payments, spreads, and swaps. While the calculator helps you lessen the risks, you can’t consider it as the major security system against losses. Instead, you can treat it as another factor that helps to analyze your current possibilities in a specific order.
Perfect Time to Use a Calculator
No matter which calculator you pick to count your possible losses and profit, you have to do this any time you buy or sell on the market. Learn how to do the math by following these simple tips. Although a calculator can’t be used as your main strategy, you can add it to your set of tools on the market.