Our Trading calculator is a handy tool for planning your trades. Use it to:
To calculate your potential profits and losses:
In our example, to open a EURUSD position with 0.1 lot and 1:100 leverage at the current market price, you need a margin of 100.91 USD.
Such calculations help you determine the best trading strategies and make well-informed decisions before opening a position.
Let’s see what each value in the calculation results means:
Margin trading, or buying on margin, involves borrowing money from your broker to open a larger position than you could with just your capital. Instead of paying the total price of the trading asset, you only need to pay a percentage (the margin) while the broker lends you the rest.
A key concept in margin trading is leverage. Leverage is expressed as a ratio between the trader’s funds and the borrowed funds, such as 1:10, 1:50, 1:100, or 1:1000. It amplifies your funds, potentially multiplying your profits or losses on trades. For example, with 1:100 leverage, every $1 you invest turns into $100. So, if you deposit $100, you can trade as if you have $10 000.
To assist with this, our Trading calculator helps you determine the required margin for each trade. This allows you to figure out how much money you need to open a position and build an effective trading strategy.