Make another 5% profit on that $5,250 and they will then have an extra $262.50 to add the next month. Its precise application may vary according to the instrument but the essence of compounding is always the reinvestment of earnings and profits. During forex compounding, a particular percentage of the previous month’s balance is added to the next month. Use our Value at Risk Calculator to estimate potential losses. This tool can help you make more informed investment decisions and ultimately help protect your hard-earned money. In the stock market, an account can compound through the reinvestment of dividends while in the forex market, you can reinvest your profits.

forex compound calculator

Lots are measured in units of currency, not by pips (i.e., how the exchange rate moves between the currency pair). Invest Profit Calculator Copy trading with FXTM Invest? Determine a trading position’s profits or losses at different market prices. Currency Converter Calculate the foreign exchange rates of major dotbig reviews FX currency pairs. Forex Compounding Calculator to calculate how much money it would grow based on the percentage gain per month and the number of months to compound. Apply that sum to the trading account and their $5250 allows them to set stop losses at $105 and profit targets at, say, $210 or $315.

Trading Tools

But many people prefer to look at numbers in more detail by doing their own calculations. You can use a financial calculator that has storage functions, especially for formulas, or a regular calculator if it has the key to calculate exponents. You can calculate compound interest in several ways to get an idea of how you can achieve your goals and help you maintain realistic expectations. Yes please, send me offers about trading related products and services. To understand why, first you need to understand why the standard compounding formula works the way it does. But by using our Forex Compounding Calculator, you may easily navigate your way on the forex market. Calculate the Compound Annual Growth Rate of your investments with our easy-to-use CAGR Calculator.

  • Compare the performance of major currencies relative to others in real-time with our advanced Currency Strength Meter.
  • It can be used in a variety of ways, including calculating the expected value of an investment, the future value of a lump sum, and the present value of an annuity.
  • You can calculate compound interest in several ways to get an idea of how you can achieve your goals and help you maintain realistic expectations.
  • If the interest rate of a currency is high, then the value is accordingly high compared to other currencies that may have a low-interest rate.

You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

CAGR Calculator

How much money do you have at the end of these ten winning trades in a row? You will have $102,400, which is a percentage return of 1024% of your initial investment! Before you get too excited, think about the fact that your chances of ten consecutive winning trades with two to one chance are approximately 1 in 169,000. For example, a forex trader earns about 10% profit every month.

forex compound calculator

The Forex calculator will help you compare trading parameters and find the best account for your needs. Margin trading — also known as buying on margin — is the practice of borrowing money from your broker to open a larger position than you could with your own capital. In other words, you don’t pay the full price of the trading asset.