Forex Guides & Trading Calculations
Clear explanations of the calculations behind forex trading. Every example uses illustrative prices you can replace with your own in the matching calculator.
Featured guides
Featured guides
What Is a Pip in Forex? Pips Explained With Examples
What a pip is in forex, the 0.0001 convention for most pairs and 0.01 for JPY pairs, how to calculate pip value, and worked examples for EUR/USD and USD/JPY.
Forex Position Size Calculator: How Position Size Is Calculated
How forex position size is calculated from account balance, risk amount, entry and stop-loss distance in pips, and pip value — with a formula, worked example and calculator.
All forex guides
What Is a Pip in Forex? Pips Explained With Examples
What a pip is in forex, the 0.0001 convention for most pairs and 0.01 for JPY pairs, how to calculate pip value, and worked examples for EUR/USD and USD/JPY.
Forex Lot Size Explained: Standard, Mini, Micro & Position Size
How forex lot sizes work — standard, mini and micro lots — how lot size sets pip value and P&L, with worked examples and calculators.
Forex Position Size Calculator: How Position Size Is Calculated
How forex position size is calculated from account balance, risk amount, entry and stop-loss distance in pips, and pip value — with a formula, worked example and calculator.
Forex Leverage vs Margin: What's the Difference?
The difference between forex leverage and margin, how required margin is calculated from position value, how leverage changes margin, and why broker rules vary.
Forex Spread Cost: How to Calculate the Cost of a Trade
Learn how bid, ask and spread work in forex, how to convert a spread into pips and money, with formulas and examples for standard and JPY pairs.
Forex Profit & Loss: How to Calculate P&L
How to calculate forex profit and loss for long and short trades from entry, exit, position size and pip value, including JPY pairs and account currency conversion.
Forex Risk-to-Reward Ratio: How to Calculate It
How to calculate a forex risk-to-reward ratio from entry, stop-loss and take-profit, with the formula, a worked example and the limitations of the measure.
Forex Swap Explained: What Is Overnight Swap?
What forex swap (rollover) is, why holding positions overnight can cost or earn money, how long and short swap rates differ, broker rules, and a worked example.
Forex Drawdown: How to Calculate Trading Drawdown
How to calculate trading drawdown from peak and trough equity, drawdown percentage, the gain needed to recover, and why drawdown measurements vary by method.