The Trade Calculator helps users calculate required margin, fees, potential profit/loss, net profit/loss, return on investment, and risk/reward ratio based on their trade parameters.
Trade Calculator
Use Our Trade Calculator
Trade Calculator Usage Guide
Introduction
The Trade Calculator is a powerful tool designed to provide traders with the necessary insights to manage their trades effectively. It allows you to calculate important trade metrics such as required margin, fees, profit/loss, and return on investment (ROI) based on your input parameters.
Step 1: Input Your Trade Details
Begin by entering the following information in their respective fields:
- Entry Price: Input the price at which you plan to enter the trade. Ensure this value is at least $0.00001.
- Exit Price: Input the price at which you plan to exit the trade. This value should also be at least $0.00001.
- Position Size: Enter the size of your position. This value must be at least $0.00001.
- Leverage: Specify the leverage you are using for the trade. The leverage should be between 1 and 125.
- Order Type: Choose between ‘Long’ or ‘Short’, depending on the nature of your trade.
- Fee Percentage: Input the percentage fee charged by your broker or exchange. The value should be between 0% and 100%, with an increment of 0.01% allowed.
Step 2: Calculate Trade Metrics
Once all required inputs have been filled, the calculator will automatically provide you with the following calculated metrics:
- Required Margin: This is calculated as positionSize / leverage, and it shows the amount of margin required in USD.
- Entry Fee: This is the fee charged when entering the trade, calculated as positionSize * (feePercentage / 100).
- Exit Fee: This is the fee charged when exiting the trade, calculated as (positionSize * (exitPrice / entryPrice)) * (feePercentage / 100).
- Total Fees: The sum of entry and exit fees, helping you see the total fee impact on your trade.
- Profit/Loss (excl. fees): This value represents your profit or loss from the trade before considering fees. It’s calculated based on your order type: orderType == ‘long’ ? (positionSize * (exitPrice – entryPrice) * leverage) : (positionSize * (entryPrice – exitPrice) * leverage).
- Net Profit/Loss (incl. fees): This reflects your profit or loss after fees are deducted, calculated as profitLoss – totalFees.
- Return on Investment (ROI): Percentage return on your initial margin, calculated as (netProfitLoss / requiredMargin) * 100.
- Risk/Reward Ratio: This ratio is calculated as abs(profitLoss / requiredMargin) and helps you assess the risk versus reward of your trade.
Step 3: Analyze Your Results
Review these calculated metrics to make informed trading decisions. Understanding these values will help you manage risk and optimize your trading strategy for better outcomes.
By following these steps, you can effectively utilize the Trade Calculator to enhance your trading performance.