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Trader's calculator

The trader's Forex calculator

The trader's calculator has been designed to allow you to work through the implications of a trade before it is opened, or to analyze an already open one. By using the calculator, you can examine up to 5 trades simultaneously, looking at aspects such as pip value, contract size, spread, swap, margin, commission and potential profit.

Just enter the data that you want to consider and click "Calculate".

Account settings:

Account type
Leverage
Account currency

Trade settings:

InstrumentVolumeActionOpening priceClosing price
1.
Calculated data
Enter the data that you would like to calculate.

Example

Let's say you have a standard.mt4 account with leverage set to 1:1000, and you want to work out the spread, swap and potential profit for a SELL position of 10 lots of USDJPY. Firstly, enter the appropriate details in the "Account Settings" section. You'll need to select i) standard.mt4 ii) leverage at 1:1000 and iii) USD as the account currency. When you have done that, click "Accept and Continue" and the "Trade Settings" section will open up.

Choose USDJPY from the instrument list, then type in 10 in the "Volume" column, and choose SELL as the action. The calculator will then add the opening and closing prices of the deals, which you are free to edit as required.

Let's say that the opening price is 100.500 while the closing price is 100.3501.

The following will be displayed in the table:

  • Trading Instrument – USDJPY. More information about specific trading instruments can be found on the "Contract Specifications" page.
  • Price – 100.500. This is the SELL price of the trade. If you want, the calculator will convert this amount into your deposit currency showing the exchange rate.
  • Pip Value – 99.50 USD. For more information on how to calculate this value, see the "Trading Conditions" page.
  • Spread (the difference between the Ask and Bid prices) – 19.90 USD. Each currency pair has an average spread.
  • Swap (the cost of keeping a position open overnight). Depending upon the interest differential of the currencies you are trading, this figure can either be positive (in your favor) or negative. More details can be found in the "Trading Conditions" page. The calculator works out the current value of the swap by itself, taking information from the "Contract Specifications"2.
  • Margin, or the minimum amount of free equity on your trading account required to open a specific position. The calculator looks at the Margin Requirements for each instrument.
  • Profit. As the position was opened as a SELL, on the basis that the price would fall, the potential profit is 1,542.25 USD.

If you have made your calculations and are ready to start trading Forex for real, then register for an account right now!

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Attention:

  • If a result is less than 0.01, the amount displayed is rounded down to zero.
  • 1 pip is equal to:
    • for currency pairs traded to 5 decimal places – the minimal change of the 4th digit after the decimal place (0.0001);
    • for currency pairs traded to 3 decimal places – the minimal change of the 2nd digit after the decimal place (0.01).
  • For nano accounts, 1 pip is the minimal price change.
  • CFD contracts are calculated using units of measurement depending upon the instrument in question. More detailed information can be found on the Contract Specifications page.
  • The trader's calculator does not consider hedged positions when calculating margin requirements.
  • The results shown in the trader's calculator are indicative only, and may not agree with any figures calculated by MetaTrader 4 or MetaTrader 5.

Please Note:

  1. The trader's calculator will include up to 5 positions by default. To increase the number of positions calculated, click "Add a Position". You can change the parameters of any position and delete any unnecessary ones.
  2. For positions left open overnight from Wednesday to Thursday, swaps are applied threefold. The calculator does not reflect this, so if you are planning to trade in this period, you should multiply the swap amount by 3.

Free profit and loss calculator

The profit and loss (P&L) calculator is a financial statement (often referred as an income statement) summarizing all revenues, costs and expenses within a specific time frame. The records provided in the statement show whether the company is able to generate more profit by increasing revenues, or cutting cost, or both. As we already know, businesses usually calculate profit and loss along with the balance sheet (shows what is owned and owed at a single moment) and cash flow statements (presents changes in accounts within specific period of time) which are necessary for comparison.

When you ask yourself how to calculate P&L, there is a general form which begins by asking you to enter revenue (top line), deducting the costs of doing business, including cost of goods sold and operating, tax, in addition to interest expenses. The difference (bottom line) is net income (profit). It is important to compare income statements from different accounting periods in order to understand the numbers and make them more meaningful, as sometimes revenues might be growing but spending is increasing at a higher rate. There are plenty of examples and templates for you to produce your personal or business profit and loss statement online for free.

General information about how P&L calculator works is provided above, but apart from the straightforward usage, it can be very efficiently implemented for trading. Although trading offers the opportunity to make profit by entering the market, well-educated investors always consider risk. Knowing how to calculate profit and loss while trading helps you clearly understand your success or failure rate as it directly affects the margin balance of your trading account. As was already mentioned you can easily find good, free P&L calculators, and by the way most trading platforms automatically calculate it for you, but it is important to understand how it actually works.

How to calculate profit and loss of your trades

Currency trading is a very challenging market and in order to have as much money available for trading as possible, remember to consider profit and loss calculations of your trade as it directly affects your margin account.

The formula to calculate profit and loss of your trades is as follows:

  • total margin balance in your account = initial margin deposit + realized and unrealized P&L

"Unrealized" in this case means that trade positions are still open (but can be closed any time). As soon as you close the trade the profit and loss calculation takes place and, in case of profit, the margin balance will increase, while in case of a loss it reduces. As unrealized P&L calculation is marked to market, it keeps changing constantly as your margin balance does. But do not panic, it is simpler than you think – in order to calculate P&L of a position, you need to check position size and by how many pips the price has moved. Position size multiplied by pip movement will show you the actual profit or loss.

Simple example based on a free P&L calculator: if your account currency is in USD and you bought EUR/USD at 1.09714, by the time the rate gets to 1.11278 you will make $1,564 profit if the size of your positions is 100,000 units.

Once you have the profit and loss values, you can easily use them to calculate the margin balance available on your trading account. You do not have to calculate all your trades manually as usually it is done automatically by the brokerage accounts. Nevertheless it is important to understand the calculations to structure your trading (it will help you to calculate the margin needed to hold a position depending on the leverage your trading account offers). By keeping all that in mind, you will manage your risks effectively and increase the profitability of your trading account.

Calculator for Forex traders – how to use it?

Always look for additional resources so as not to put yourself in a situation when trading feels like a complicated math class. One essential assistance tool is the Forex trader calculator which will help you perform important calculations so as not to lose track of your trades. There are many types of calculators FX offers, so let us go through the main ones and understand how to use them.

The options of Alpari calculator:

Alpari lets you analyse your potential costs and trading results without actually executing an order. To make this happen you just need to use a trade calculator that is very simple to use.

  • First of all you have to select your account type, as different accounts come with various spreads and commissions.
  • After this has been done, select a leverage you use or leave it as the default value.
  • Then, simply select your account currency, as this has a significant impact on your margin requirement.
  • Once the aforementioned set up is in place, select the instrument of your interest, a volume and direction of your trade, and then set the opening and the closing prices.
  • Should you want to consider more positions into your calculations - click to add as many positions as you want.
  • Once you are done listing your positions, click on the button calculate and preview the value of a pip, the spread in pips and in dollars, swaps and required margin to open the trade.

It might seem difficult but it is not at all since all important calculations are performed automatically: all you have to do is to fill the fields regarding your interest. The amount of numbers can be overwhelming but there are so many tricks and tips all over the iInternet which will help you understand more clearly how to use FX calculators in order to visualize your goals and monetary fundamentals.

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