If you’re a Forex trader, you’re likely aware of the endless number of Forex calculators and Forex tools available on the web. Designed to help traders make better decisions and earn more profit, choosing the right tool is invaluable. The right Forex calculator could mean the difference between supplemental income and quitting your day job. Need some help choosing the best Forex calculator for you? Keep reading.
Trading Skill and Experience
Your level of Forex expertise is likely to dictate the type and sophistication of the calculators you’ll be most comfortable using. If you’re just starting or experimenting with Forex trading for the first time, it might be best for you to stick with the basics. Don’t bog yourself down with data that you don’t understand, while you’re still trying to learn how the markets work.
Whether you’re a Forex rookie or a full-time trader, accuracy is paramount. Traders need to know how the market is changing, minute to minute, to see if a currency is going up or down. Real time information will help you notice predictive fluctuations and trends in the market. Look for Forex tools that will alert you to optimal buy and sell currency rates.
The Forex market changes fast and all traders need help monitoring what’s happening in the market. No matter what your particular trading strategy, it’s likely that you will need help from several different calculators over the course of your Forex trading days, weeks, and months. Here are a few of the most useful calculators that the best Forex calculator providers offer.
Pivot Point calculators indicate prices that are in either excessive or regular ranges. Based on the open, high, low, and close prices for the previous period, information from pivot point calculators help traders determine if the Forex market is bullish or bearish and the likelihood of support and resistance levels. Combined with spread costs and margins, pivot points provide an accurate market picture and help traders see how the value of a currency pair is changing over time.
Pip calculators show the profits and losses resulting from fluctuations in foreign exchange markets and from the sales and purchases of currency pairs (depending on lot size and exchange rates). Look for a more advanced pip Forex calculator that will not only work with the most actively traded currencies, but also with a Fibonacci calculator that will find percentage changes in highs and lows. Experienced traders favor data from Fibonacci calculators, so don’t use a sub-standard pip calculator that leaves you behind the pack.
Forex profit-loss calculators take some of the guesswork out of this already risky business. Estimating potential profits and losses on a proposed trade, a profit-loss Forex calculator takes information from a currency pair, your account currency, opening prices, hypothetical closing prices, buying or selling action, and lot size. This tool can be particularly effective for traders unsure about what their lot size should be.
Risk percentage calculators are another way to determine an optimal lot size. Based on the amount of account balance you’re willing to risk, your account currency, proposed currency pair trade, and stop loss level in pips, this Forex calculator will give you the ideal lot size for your trade.
Margin calculators, often provided on Forex trading platforms, allow traders to calculate how much collateral they require to cover any incurred losses from a trade. Select margin Forex calculators also indicate how much margin a trader has available, the largest trades that can be made given their available margin, and how close a trader might be to a margin closeout.
Reputation and Reviews
A simple google search for Forex calculators results in pages and pages of sites claiming to have the best or the most popular tools in the Forex industry. Instead of choosing an unknown site, consider a Forex calculator from a Forex tool provider with extensive credentials for providing analysis, trading accounts, trading platforms, educational instruction, and indicators.
While you could simply choose a calculator at random from a Google search, it’s not a wise decision for your trading career. Choosing a Forex calculator from a reputable site not only means that you can trust the data you’re receiving, but you will also benefit from the support and expertise of the site’s analysts and trading community. Before settling on a site for tools and calculators, message site members for testimonials and reviews. Read through the site’s FAQs, gauge how user-friendly the site is, and notice if the site is customer focused.
While you spend countless hours studying market conditions and Forex trends, be sure that your Forex calculator provider is working just as hard for you. You’re already managing risks in the foreign exchange market, don’t take risks with your data by choosing the wrong Forex calculator.