Forex short for foreign exchange transaction is a transaction between a trading platform and a customer involving the exchange for buying and selling currency pairs. Risk in forex trading is an unescapable monster in our closet but should we be scared of the monster that hides under our bed? With informed decisions, you can avoid as much as risk possible. Being safe with your savings starts with your decisions.
With this forex risk and reward calculator, you’ll be able to simulate your trading in a way that you won’t be harmed. And I strongly suggest you try this before you do any trading because most of the losses in forex trading originate from human behavior.
You are your biggest enemy when it comes to forex, just like many investment methods. Forex traders are keen to overestimate their financial abilities, leading to an unwanted decision-making process and potential losses. A forex risk to reward calculator may be the solution to see how your tradings will result.
First define your position size by filling in the Position Size form to the left.
- Select the currency of your trading account
- Input the balance of your trading account.
- Select the currency pair you are going to trade.
- Input the lot size (volume) you plan to trade with.
- Select the leverage on your trading account
This will display a margin value in the selected account currency. The box lights up red if a position cannot be opened or green if a position can be opened.
The user selects either BUY or SELL to determine trade direction, then inputs the entry level, take profit and stop loss values which will give the profit and loss amount in the boxes below.