Trader's calculator

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Trader's calculator

Post by Evgenia Gencheva on Fri Oct 14, 2016 2:13 pm

Trader's calculator helps determine the specifications of your trade. To assess the gain or loss to calculate the margin required for a position to calculate the value of a pip.
For example:
Size = lots * contract size of contracts or lots; 5 lots of EUR / USD: 5 * 100 000 * EUR = 500 000 EUR
Value pips (Forex) = (1 pip / exchange rate quoted in a currency to USD) * lots * contract size lots
5 lots of EUR / USD: (0,0001 / 1) * 5 * 100 000 EUR = 50 USD

Most brokers have such calculator with commercial dictionary of their websites.

Typical terms are:

Buy / Sell - For Forex & CFDs trading can participate on both sides of the market at rising and falling quotations. If you see an increase in quotes, you can run a long position; if you see the falls, you can become short with

Volume of contracts - Equivalent to the amount traded on the Forex and CFD markets, which is calculated as a standard amount of shares multiplied by the amount. Forex standard size Lot represents 100,000 units of the base currency.

Tool - Also called 'Symbol'. Commercial asset buy or sell.

Leverage - The ratio of the nominal value of the position of the amount of margin required to open a position (ie leverage 1: 500 means that the contract of EUR 100,000 requires only 200 EUR margin). Change Your personal about Forex leverage our Trader's Room; Note that leverage for CFDs index is fixed and unchanging.

Lot - Common term for volume in the world of Forex trading (traders talk about the number of 'lots' on Forex and usually number 'contracts' for CFD-s).

1.00 refers to one standard lot or 100,000 units of the base currency.
0.10 refers to 1 mini lot or 10,000 units of the base currency.
0.01 refers to 1 mkro lot or 1,000 units of the base currency.
In the case of CFD-s, 1 Lot = 1 CFD.

Margin - This is how capital (margin) is required to open and maintain your position.

A value of 1 pip - Pip does not change the percentage in points and is the most commented increase for currencies. About Forex instruments admitted to the fifth decimal point (eg GBPUSD - 1.32451) 1 pip is equal to the price increase of 0.00010; foreign exchange instruments admitted to the third decimal place (for example USDJPY - 101.522) 1 pip is equal to the price increase of 0.005. Indices 1 pip is equal to the price increase of 1.0, which is also called index point. For other instruments 1 pip equals the amount of tick.

Tick ​​- The smallest change in quotation for a tool such as 0.00001 for EUR / USD in Forex and CFD on a 0.1 index DAX30
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Evgenia Gencheva
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