EUR/USD: Why the rate differential still sets the ceiling on any euro rally
Every euro rally of the past two years has run into the same wall: the spread between what the market…
Position size, profit and loss, and margin calculators for currencies, metals and indices.
Three calculators that answer the questions worth asking before a trade rather than after it: how large the position can be, what it is worth if it works, and how much of the account it ties up while it is open.
Work out how large a position can be before a losing trade costs more than you decided to risk.
For pairs where the US dollar is not the quote currency - USD/JPY, USD/CHF, USD/CAD - and for metals and indices, pip value moves with the market price. Take the figure from your broker's platform and enter it manually rather than assuming ten.
Check what a trade is worth before you take it, and what the same trade costs if the stop is hit.
The figure ignores spread, commission and overnight swap. Real results are always worse than the arithmetic, and the gap widens the more often you trade.
See how much of your account a position ties up, and how little room is left before a margin call.
Margin is what the broker holds, not what you can lose. A position using a small slice of margin can still run a loss far larger than that slice. Leverage caps also differ by regulator and by instrument.
Every figure here is arithmetic on numbers you supply. None of the tools reads a live price, because a stale rate inside a risk calculator is more dangerous than no calculator at all. Take current prices and pip values from your broker’s platform, and remember that spread, commission and swap all sit outside these results.
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