TRADING FAQs

How do I know how much P/L will be gained by my Stop loss and Take profit before I place them?

  • Strike Price = 1.15151
  • Take Profit = 1.16151 = 100 Pip movement
  • Stop Loss = 1.14151 = 100 Pip movement
  • Pip value * Pip Movement = P/L when Stop Loss or Take Profit is triggered
  • 11.5 * 100 = +-1150$

How do I calculate Commissions?

  • Commission per 1 lot * Contract size = Commission in Base Currency
  • 4.5 * 0.10 = 0.45???
  • Commission * Base Currency vs Account Currency = Commission is Account Currency
  • 0.45??? * 1.15151 = 0.52$

How do I calculate spreads?

  • Bid Price ??? Ask Price = Spread
  • 1.15140 – 1.15151 = 0.00011 = 1.1 pip spread

How do I calculate swaps?

  • If Swaps are given in Points
  • Pip Value * Swap Rate * Number of Nights / 10 = Swaps
  • 11.5 * -8.3 * 5 / 10 = 47.725$
  • If swaps are given in Pips
  • Pip Value * Swap Rate * Number of Nights = Swaps
  • 11.5 * -0.83 * 5 = 47.725$

How do I calculate Free Margin?

  • Equity – Margin (used) = Free Margin
  • 10950$ – 115.151$ = 10834.849$

How do I calculate Margin Level?

  • Equity / Margin (used) * 100 = Margin Level
  • 10,950$ / 115.15 * 100 = 9509.34%

How do I calculate margin requirements?

  • Assuming Account Balance is in USD and you are trading EUR/USD
  • 1 standard lot size * Trade Size * Margin = Margin Required in Base Currency
  • 100,000 * 0.1 (10,000???) * 0.01 = 100???
  • Margin Required * Exchange Rate of Base Currency vs Account Currency = Margin Required in Account Currency
  • 100 * 1.15151 = 115.151$

How do I calculate a value of 1 pip?

Amount of Base Currency * Pips = Value in Quote Currency

Value of 1 pip in EUR/USD= 1 Lot (100 000 ???) * 0.0001= 10 USD

Value of 1 pip in USD/CHF= 1 Lot (100 000$) * 0.0001=10 CHF

  • Value of 1 pip in EUR/JPY=1 Lot (100 000 ???) * 0.01= 1000 JPY

How do I calculate Equity?

  • Balance +- P/L (open positions) +- Swaps/Commotions = Equity
  • 10000$ + 1000$ ??? 50$ = 10950$

How do I calculate Leverage?

1 / Account Margin = Leverage

1 / 0.02 = 50