ForexEzy
No Result
View All Result
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
No Result
View All Result
ForexEzy
No Result
View All Result
The World’s Leading Social Trading Platform
Try now
Home Forex Education Forex Basics

Best 5 Leverage Calculators Use Can Use for Free

by Chintan Patel
May 30, 2022
in Forex Basics, Forex Trading Strategies
0
Best 5 Leverage Calculators Use Can Use for Free
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

Leverage is an important concept in forex and stocks trading. It refers to the amount of money that a broker extends to a trader in order to help them maximize their profitability. The concept is usually related to that of margin. In this article, we will explain how these concepts work and some of the most popular free leverage calculators to use.

The Best Forex Robots Report Is Already Here!
best forex robots
Check out 30+ best expert advisors with daily updated live results and statistics
Click Here

How leverage works

The concept of leverage is best explained using an example. Assume that a stock is trading at $10 and you believe that it will rise to $13. If you have $10,000, you can buy 1000 shares. If the stock rises to its target, you will have a profit of $3,000. 

Assume that you decide to take a $10,000 loan and buy the stock. In this case, you will have 2,000 shares. As a result, your total profit will be $6,000. This means that leverage has helped you double your profit. 

While leverage is a good thing, it is also highly risky since it exposes a trader to a possibility of making a negative balance. This happens since leverage is a loan that a trader needs to pay back.

Margin refers to the amount of money that one needs to open and maintain an account. In other words, a trader uses margin to maintain a leveraged position. A margin call, which is a feared situation, is when a trader is requeste to add cash in order to maintain his position. 

Benefits of using leverage

There are several benefits of trading with a leverage. First, it allows you to buy assets that you would not necessarily afford without it. For example, if you have $1,000 in your account, it will not be extremely profitable to trade gold, which trades at about $1,900.

Second, leverage is a good feature for diversification. Again, if you have just $1,000 in your account, it might be difficult to hold multiple stocks at the same time. 

Third, leverage can help you increase your profitability. As shown in the example above, if things go your way, your trade will be more profitable. 

What is a leverage calculator?

A leverage calculator is also known as a margin calculator, is a free tool that helps a trader to determine whether on should reduce their lot sizes or adjust their leverage. The calculator helps to simplify a relatively long and complicated challenge. It simplifies the following formula:

Required margin = Trade size / leverage x account currency

For example, assume that you are trading 4 lots of the GBPUSD pair using a 1:100 leverage. In this example, we assume that the account is denominated in USD and that the pair is trading at 1.1200. As a result, the required margin is 

200,000/100 x1.1200 = $2,240.

FxPro leverage calculator

FxPro is one of the biggest companies in the forex trading industry. It has more than 1.8 million customers from around the world. The company has achieved this success partly because of the multiple features it offers. 

One of these features that the company offers is a free leverage calculator. This tool is provided to both customers and non-customers.

To use it, you just need to select the currency pair you are trading, the base currency, trade size in lots, and leverage. 

In the example below, we have selected the EURTRY pair whose currency account is in USD. We have also added trade units at 10,000 and a leverage of 1:50. In this case, the required margin is $214 as shown below.

FxPro margin calculator

Investing.com margin calculator

Investing.com is one of the biggest financial media companies around. According to SimilarWeb, the website has over 142 million monthly visitors. The site provides some of the most useful tools in the forex industry. For example, it is widely used for the economic calendar, which provide a schedule of economic events.

Investing.com has a simple leverage calculator. To use it, the platform requires you to enter several parameters like account currency, currency pair, conversion ratio, margin ratio, and trade size. A good example of this is shown in the chart below.

Investing.com

RoboForex margin calculator

RoboForex is another top forex and CFD broker that provides solutions to thousands of people from around the world. Like FxPro, the platform provides more tools such as a calculator that has more features than the other two. 

All you need to do is provide a ticker, the lot size used, leverage ratio used and the account currency. The chart below shows the results that the calculator produces, including the typical spread and swap short and swap long.

Roboforex calculator

MyFxBook

The other most popular leverage calculator is provided by a company known as MyFxBook. This is a company that is widely-known for providing automated bots reviews. As a result, it is used to monitor the performance of robots in the market. 

Because of the importance of leverage and margin, the company also provides a free calculator that one can use to find the data. This calculator is similar to that provided by Investing,com. All you need to enter is the currency pair, account currency, margin ratio, trade size, and the currency pair. 

MyFxBook calculator

XM Margin Calculator

XM is one of the biggest companies in the forex and CFD industry. The company offers its services to thousands of people from around the world. The calculator works just like the others. All you need to select is the account base currency, currency pair, accoun type, volume in lots, leverage, and the conversion price. In the account type, the three offered ones are micro, standard, and XM Zero. 

XM Margin Calculator

Summary

Leverage and margins are some of the most important concepts in the forex and CFD markets. In this article, we have explained how margin works and highlighted some of the most important margin calculators in the market today. 

The Best Forex Robots Report Is Already Here!
best forex robots
Check out 30+ best expert advisors with daily updated live results and statistics
Click Here
ShareTweet
Previous Post

Golden Coup EA Review

Next Post

Divo EA Review

Related Posts

Short Selling and Strategies to Use

by Richard Brase
September 21, 2022
0

Are you interested in short selling? This can be a great way to make money if you are savvy and...

Scalping in Forex Trading

by Richard Brase
September 9, 2022
0

Heading in Forex is a trading approach that looks to make a tiny profit on each trade to compound those...

Pullbacks vs Reversals In Forex: How To Differentiate Between The Two?

Pullbacks vs Reversals In Forex: How To Differentiate Between The Two?

by Chintan Patel
June 7, 2022
0

Overview Have you ever closed your positions in fear of a sustained pullback, only to see the market eventually move...

KeyDifferences Between the Simple and Exponential Moving Averages

KeyDifferences Between the Simple and Exponential Moving Averages

by Chintan Patel
April 18, 2022
0

Moving Averages (MAs) are often the first indicator introduced to a newbie in any financial market. They remain the bread-and-butter...

Top 7 Most Valuable Currencies In 2022

Top 7 Most Valuable Currencies In 2022

by Tim Baudin
April 11, 2022
0

If you asked the average Joe with little knowledge of foreign exchange which currency they think is the most valuable,...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Best Forex Automated Systems

  • TechBerry 9/10
  • Happy Galaxy 8.5/10
  • Forex Cyborg 8.5/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10
  • Best Forex Brokers
  • Best Forex Robots
  • Best Forex Signals
  • Best Forex Managed Accounts

Top Trading Markets

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Cryptocurrency Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Forex VPS
  • Fundamental Analysis
  • Managed Accounts
  • Money Management
  • News
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Apps
  • Trading Psychology
  • Uncategorized
Tags
arbitrage atr Avalanche AVAX Coin bollinger bands cci chart patterns classics copy trading courses Crypto day trading forex brokers forex charts forex ea forex education forex forecasting Forex Indicators forex software reviews grid trading hedging ichimoku macd market cycles news trading oscillators Polkadot price action trading rsi social trading SOL Solana strategies tips & tricks trading bots trading platforms trend trading Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2023 by ForexEzy.com

No Result
View All Result
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts

© 2023, Forexezy. {copy} {year}