Forex Position Size Calculator
Useful information about the moneyland.ch investment position size calculator:
- The forex investment position size calculator makes it easy to find the ideal size for forex investment positions based on available margin and maximum acceptable risk. Trading costs and interest charges on financing can also be accounted for in calculations.
- More forex calculators: Forex profit and loss calculator, forex stop-loss and take-profit calculator, pip calculator.
- You can find more trading calculators here. All moneyland.ch financial calculators are listed here.
- Find the unbiased Swiss forex broker comparison here.
- The first currency in a currency pair is known as the based currency. The second is known as the quote currency. In the case of the EURUSD currency pair, for example, the euro is the base currency and the U.S. dollar is the quote currency.
- Gains and losses are calculated in the quote currency (the second currency in the currency pair) and converted to the currency which denominates the brokerage account. Possible costs are displayed in the account-denominating currency. Possible interest on leverage financing are calculated in the base currency (the first currency listed in a currency pair) and are then converted into the currency which denominates the brokerage account.
- Profits and losses, trading costs and interest charges may be applied in different currencies and at varying rates depending on the broker and on the currency pair being traded.
- The method used for calculating interest on leverage financing can vary from one broker to another. The calculator applies a constant interest rate to the invested amount in the base currency (the first currency in the currency pair) using a linear model and converts results into the currency which denominates the brokerage account in real time. Interest does not apply when investment positions are opened and closed on the same day.
- If credit interest applies and if the actual number of days on which interest is applied is shorter than the anticipated financing term, the calculated position size would result in a higher loss than the maximum tolerable loss shown.
- The term pip denotes a unit of measurement used to indicate changes in exchange rates of currency pairs. In relation to a majority of currency pairs, a pip is equal to 0.0001 of a currency unit. You can find more information about pips here.
- Calculations are based on the assumption that positions are closed exactly at the entered maximum tolerable loss. The maximum tolerable loss can be entered in pips or as a stop loss rate in relation to an opening rate. There is no guarantee that positions will be closes at the stop-loss rate because stop-loss orders are converted to market orders when the stop-loss threshold is reached and closed at the best available offer.
- The maximum loss and the maximum position size are calculated exactly and then rounded to the second decimal. Maximum investment position sizes for standard lots are rounded.