The trader’s calculator is a special function built in the xStation trading platform in the order window.
It helps in the automatic calculation of the parameters of your trade, such as pip value, margin, spread value and much more.
It instantly determines all aspects of your trade, allowing you to make more informed trading decisions at a quicker rate.
The trader’s calculator is a great tool that can help you in risk management.
One of the keys to successful and profitable trading is risk management. In order to analyse your risk for each trade, it’s important to understand how much you can potentially profit - or lose - with each position. With our advanced in-built trading calculator, aspects like pip value, margin, spread value, and potential profit or loss levels are instantly determined, so that you can make more informed trading decisions - without having to do any manual mathematics.
How does the Trader’s Calculator work?
Take a look at the example above, where an order window has been opened on EURUSD and a 1 lot volume buy order has been selected.
When a 1 lot transaction is opened, the trader’s calculator made some helpful calculations that include:
So, with the trader’s calculator, you know that the spread cost of placing the trade is £8.31. You also know that £417.78 of your capital will be reserved as margin for the duration of the trade. Also, you know that you stand to profit or lose £7.56 with every pip movement in the market above or below your opening price.
Let’s say that the market moves 50 pips in your favour:
Profit = (Number of pips x Pip value) - Spread = (50 x 7.56) - 8.31 = £369.69
Let’s say that the market moves 50 pips against you:
Profit = (Number of pips x Pip value) - Spread = (-50 x 7.56) - 8.31 = -£369.69