Trade volume
The real size of your position in units.
Volume=Lots×Contract size
- Lots:
- Number of lots in the position.
- Contract size:
- Units per lot. Depends on the instrument.
Hypothetical example · EUR/USD · 1 lot
1 × 100,000 =
100,000 EUR
You follow the example. Now, with your numbers.
Every formula, with its units, a worked example and its calculator.
With my numbers?
Hypothetical example: 1 EUR/USD lot in a USD account, 10 USD per pip.
How to read a formula
- You enter it
- From the contract
- Price
- Result
Calculators open with no sign-up. “Understand this formula” opens the question as a draft.
Contracts and pips, in ReferenceSize and value
Pick the pair and the lots: the formula fills itself in, with the same math as the calculators.
Calculator · Pip valueUSD account
- Lots
- 1
- Contract size
- 100,000
- Pip size
- 0.0001
- Account conversion
- 1
Pip value
per 0.0001 move
Example
Change the numbers: the math is real; the contracts are examples.
Pip value
Estimated value of one pip in the account currency for linear contracts.
If the account isn’t in the quote currency, convert it: the value moves with the exchange rate.
Pip value=Lots×Contract size×Pip size×Account conversion
- Pip size:
- Price change defined as one pip; it can differ from the minimum tick.
- Account conversion:
- Account currency per unit of quote currency; 1 when they are the same.
Hypothetical example · EUR/USD · 1 lot · USD account
1 × 100,000 × 0.0001 × 1 =
10 USD per pip
Costs
Spread
The difference between buy and sell, in pips. It’s an implicit cost.
Spread=(Ask−Bid)/Pip size
- Ask:
- Buy price.
- Bid:
- Sell price.
Hypothetical example · EUR/USD · Ask 1.08542 · Bid 1.08540
(1.08542 − 1.08540) / 0.0001 =
0.2 pips
Spread cost
Monetary equivalent of the observed spread for this size; excludes other charges.
Spread cost=Spread×Pip value
- Spread:
- The difference, in pips.
- Pip value:
- Value per pip in the account currency for this size and exchange rate.
Hypothetical example · 0.2 pips · pip value 10 USD/pip
0.2 pips × 10 USD/pip =
2 USD
Swap
Estimated charge or credit for holding a position, when the rate is expressed in pips.
Only valid if the rate is in pips per charge; confirm the unit and the schedule in your account.
Swap=Swap rate×Equivalent periods×Pip value
- Swap rate:
- Long or short rate, expressed in pips per equivalent daily charge.
- Equivalent periods:
- Equivalent charging periods: account for multiple charges and days with no charge.
Hypothetical example · −0.15 pips per charge · 3 equivalent periods · 10 USD/pip
−0.15 × 3 × 10 USD =
−4.50 USD
Margin and leverage
How much the position sets aside, how much stays free and where your margin level is.
Margin · 550 USD
Hypothetical example: 1 EUR/USD lot at 1.10 with 1:200 sets aside 550 USD.
Required margin
Estimate in the account currency: notional exposure divided by the applied leverage.
The requirement depends on the broker, the instrument and the account; margin does not limit the loss.
Margin=(Lots×Contract size×Price×Account conversion)/Leverage
- Price:
- Quote currency per unit of the asset; EUR/USD 1.10 means 1.10 USD per EUR.
- Leverage:
- Leverage applied to this calculation (200 represents 1:200).
Hypothetical example · EUR/USD · 1 lot · price 1.10 USD/EUR · USD account · 1:200
100,000 EUR × 1.10 USD/EUR / 200 =
550 USD
Free margin
Equity minus used margin. It can be negative and changes with open positions.
Free margin=Equity−Margin
- Equity:
- Your capital including floating P&L.
- Margin:
- Used margin, in the same currency as equity.
Hypothetical example · Equity 2,000 USD · margin 500 USD
2,000 USD − 500 USD =
1,500 USD
Margin level
Equity as a percentage of used margin; not a guarantee of safety.
It only exists with used margin; the broker sets the margin call and stop out thresholds.
Margin level=(Equity/Margin)×100
Hypothetical example · Equity 2,000 USD · margin 500 USD
(2,000 USD / 500 USD) × 100 =
400%
Result
Profit / loss
Estimated gross result from the price move, before commissions, swap and other adjustments.
With execution prices (Bid and Ask) the spread is already included: don’t subtract it again.
Profit / loss=Change in pips×Pip value
- Change in pips:
- The move for or against you, in pips.
Hypothetical example · Buy EUR/USD · 1 lot · opening Ask 1.0850 → closing Bid 1.0870 · USD account
20 pips × 10 USD/pip =
+200 USD
Take profit / stop loss
Planned price level at a distance from the opening price; it does not guarantee the execution price.
Add for a buy TP or a sell SL; subtract for the other two. Execution can differ.
TP / SL=Open price±Change in price
- Open price:
- The price you opened at.
- Change in price:
- Distance in pips multiplied by pip size.
Hypothetical example · Buy TP on EUR/USD · open 1.0850 · distance 20 pips
1.0850 + 0.0020 =
1.0870
Your case isn’t the example? Use your own numbers.
Calculate with my numbers
No sign-up. The examples are hypothetical: confirm the contract and your account before you trade.