What is a Forex calculator? Why do we need calculators for trading? Are there calculators for trading strategies? What is a Forex broker partner calculator? How do Forex calculators work? Find detailed answers to these and many other questions in my article.

What is a Forex calculator and why do you need it?

Trading today involves a lot of calculations, which may mean obstacles for a novice trader. When you started trading, you didn't really expect to be counting and calculating things a lot. You knew how to buy or sell and the only calculation was the pleasant calculation of possible profits.

However, when the trading results fall short of your expectations, you might start thinking about what you did wrong. The price has passed 1,000 points and you know that with your volume it equals 100 USD of profit. But for some reason, the profit was not 100 but 50 USD.

Why is that? Actually, there are several reasons because the final result depends on a lot of factors, and the main factors are the primary calculations factors.

At the dawn of Forex traders had to do a lot of calculations manually. It took an enormous amount of time and trading ceased to be exciting because of all the calculating.

A trader needs to calculate such parameters as cost of one point, size of the commission, values of spreads and swaps, size of orders, and then correlate them all with the money management parameters for your deposit.

In my first years of conscious trading, the calculations of parameters for a single trade took me about an hour. But, as all know very well, “if you want to earn, you need to work”.

Modern trading has remained unchanged in these matters, and in order to earn now you need to do a lot of calculations, but there is one big difference: you don't have to do them manually - special calculators have been developed for this purpose.

Of course, there are still old-school traders who still calculate everything manually (and I am one of them), but most traders now take advantage of the calculators.

There are quite a few calculators available now and they are all different. Someone needs to calculate money management parameters, someone needs to calculate commissions and spreads, and someone wants to calculate the size of their affiliate reward in one click.

Yes, there are calculators that can do this. I decided to write this article to show you the variety of Forex trading calculators and help you understand the basic principles of their operation. So let's get started.

A little disclaimer. Most brokers on the Forex market have their own calculators and in my review, I made a selection of calculators, which, in my opinion, are the simplest and most accurate.

**Forex Trader’s Calculator**

Trader's calculator is the most popular and simple calculator that allows you to calculate such parameters as the size of expected profit for your position in the deposit currency, spreads and swaps for the selected trade volume, and also shows the required margin for the operation. Undoubtedly, these are the most important parameters for a trader. How does it work?

As I said above, I find the LiteFinance calculator to be the most convenient trader's calculator. I will take it as an example to show you the principle of operation.

- First of all, you need to enter the parameters of your trading account into the calculator, such as account type (ECN, CLASSIC, or CENT), account currencies (USD, EUR, RUB, MBT, CHF, JPY), and leverage setting on the account (we take it as 1:100). After entering this data, go to step 2.
- Now you set up the properties of the order. Choose the type of trading instrument (currency pairs, indices, or something else), then choose the trading instrument itself, in our case, it is the EUR/USD currency pair. You can add several orders and the parameters will be calculated for each order separately. Below you enter the trade volume in lots, in our case, it is 1 lot. Next, select the type of operation: buy or sell. Now you only need to enter the opening price and the expected closing price of your trade. After entering these parameters, click “Calculate”.
- After the calculations, below you will see the information for your order: the price of one point, commissions, as well as the amount of required margin, and, most importantly, the amount of the estimated profit.

**Risk and Reward Forex Calculator**

The risk and reward calculator was created to calculate the ratio of risk and potential profit based on key ratios in technical analysis — correction levels and Fibonacci trends.

LiteFinance calculator is the most convenient trader's calculator. I will take it as an example to show you the principle of operation.

- The principle of operation of this calculator is very simple. You enter data for the three points (the beginning of the trend, the end of the trend, and the end of the correction) into relevant fields: Price A, Price B, Price C. Then you need to click the “Calculate” button. The calculator will make calculations in accordance with Fibonacci levels.
- In the results window, you will see the levels that the calculator offers, as well as the risk and reward ratio for the calculated levels. As you can see, everything is quite simple and convenient.

**Fibonacci Calculator**

The Fibonacci Calculator was developed based on Leonardo Fibonacci’s number theory. Numerous strategies have been developed on the basis of the Fibonacci number series, and the most popular and accurate of them is the corrections and trends theory.

The theory says that there is a series of numerical ratios for different types of trends. Each of the trend types has a series of numeric levels where price consolidation occurs. For correction movements, these values are less than 100% with major levels at 61.8%, 38.2%, and 23.6%.

For trend movements, values are above 100% with major levels at 161.8% and 261.8%. The calculator constructs the Fibonacci grid automatically and displays the levels in percentages and quotes.

LiteFinance calculator is the most convenient trader's calculator. I will take it as an example to show you the principle of operation.

- To set up the calculator, you need to enter the trend levels: first, you enter the maximum price of the trend, and then the minimum price. Next, select the type of trend (uptrend or downtrend), and finally, press the “Calculate” button.
- The calculator will show the levels and the corresponding quotes in the chart. The left column will show the values for the correction movement from 0% to 100%.
- In the right column, we can see the values for a possible future trend with values ranging from 0% to 261.8%. All that’s left is to apply these levels to the chart. I do this with the help of the horizontal lines available in any terminal. Continue reading with Ltefinance.com...