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CUSTOM JAVASCRIPT / HTML

Trading Calculator

How to use

β“˜ Your total capital for trading.
$171.00
β“˜ Describes potential reward for a given risk.
2:1
β“˜ Percentage of capital risked per trade.
10%
β“˜ Percentage of trades you expect to win.
50%
β“˜ Percentage gain or loss per trade.
10%

Profit Amount: $0

Plan Status: βœ…

CUSTOM JAVASCRIPT / HTML

How To Use The Trading Calculator

Welcome to the Trading Calculator. This tool is designed to assist you in creating a robust trading plan by considering various factors that influence the outcome of your trades. Follow the instructions to understand and make the most of each section.

Calculator Instructions

Navigate the complexities of trading calculations with ease. This section offers a comprehensive guide, ensuring you make the most of our calculators.

  • Purpose: To specify your expected winning percentage for your trades.
  • How to Use: Move the slider to match your available capital for trading.
  • Detailed Description: This field should reflect your total trading capital. It will influence the actual amount risked per trade, which is calculated as a percentage of this total capital.

  • Purpose: To determine the ratio between the potential reward and risk in a trade.
  • How to Use: Move the slider to adjust the risk-reward ratio. This value describes the potential return on a trade for each unit of risk taken.
  • Detailed Description: The risk-reward ratio is a critical factor in determining the profitability of your trades over time. A ratio of 2:1 means you are willing to risk 1 unit of currency to make 2 units.

  • Purpose: To decide the percentage of your total capital that you are willing to risk on each trade.
  • How to Use: Adjust the slider to set the percentage of your capital that you wish to risk for each trade.
  • Detailed Description: It's crucial to manage your risk by not investing too much capital in a single trade. Experts generally advise risking a small percentage of your total capital on a single trade to ensure sustainability and avoid significant losses.

  • Purpose: To specify your expected winning percentage for your trades.
  • How to Use: Adjust the slider to set the percentage of your capital that you wish to risk for each trade.
  • Detailed Description: It's crucial to manage your risk by not investing too much capital in a single trade. Experts generally advise risking a small percentage of your total capital on a single trade to ensure sustainability and avoid significant losses.

  • Purpose: To define the expected percentage gain or loss per trade.
  • How to Use: Adjust the slider to set the expected gain or loss for each trade.
  • Detailed Description: This value indicates the percentage of gain or loss you anticipate for each trade. It should be set based on your trading strategy and historical results.

  • Purpose: To display the calculated profit amount and the viability of the trading plan.
  • How to Use:These fields are auto-calculated and updated as you change the other parameters.
  • Detailed Description: The Profit Amount is the expected profit calculated based on the input parameters. The Plan Status indicates the feasibility of your trading plan, with a warning if there is a risk of liquidation.

Understanding Liquidation

Learn its mechanics, how to navigate it, and build strategies to safeguard your investments effectively.

Liquidation in trading occurs when the total losses on trades reach a point where you no longer have enough capital to hold the position, forcing the automatic closing of your trades by the broker. This section explains how each part of your trading plan can influence the risk of liquidation:

What it is: The balance between potential profit (reward) and potential loss (risk) in a trade.
How it Affects Liquidation: A high-risk, high-reward ratio could lead to substantial losses, bringing your capital down quickly and increasing the chance of liquidation.

What it is: The portion of your capital that is used for a single trade.
How it Affects Liquidation: A large trade size increases the amount of capital at risk. If the trade goes against you, it may result in a significant loss, bringing you closer to liquidation.

What it is: Your total available capital for trading.
How it Affects Liquidation: Lower capital means lesser room to absorb losses. A few losing trades can deplete your capital, leading to liquidation.

What it is: The expected percentage of trades you will win.
How it Affects Liquidation: An overestimated win rate can make your plan unrealistic, not accounting for potential losses that can result in liquidation.

What it is: Expected percentage gain or loss for each trade.
How it Affects Liquidation: Underestimating potential losses or overestimating gains can make you unprepared for adverse market moves, risking liquidation.

  • Balance your Risk-Reward Ratio: Ensure a balance that aligns with your risk tolerance.
  • Manage Trade Size: Keep it a small percentage of your total capital to manage losses better.
  • Be Realistic: Ensure your capital, win rate, and gain/loss expectations are realistic.
  • Regularly Review: Continuously monitor and adjust your trading plan based on actual performance and market conditions.

In your trading calculator, the Plan Status will show a warning if the set parameters indicate a risk of liquidation, prompting you to adjust your trading plan to manage risk better.