Basic FOREX Calculations
Don't panic! It is copacetic to learn the various numeric values, calculations, and formulas along the way. Practicing on your demo account is the way to go for most new traders. The most critical data at the outset are profit and loss, winners to losers, and consequent profit threshold. But the math is not nearly as complex as it may appear at first. In fact, I can reduce it all to the following cheat sheet. Tables through are available for download from the Getting Started section of www.goodmanworks.com.
- Basic FOREX Calculations
- Price Change = Exit Price â " Entry Price
- Leverage = 100/Margin Percent
- Margin Percent = 100/Leverage
- Profit in Pips = Price Change ÃƒÂ