Apart from market analysis and the right trading strategy, forex trading implies accurate calculations. A trader’s calculator is a simple tool available free of charge. It simplifies planning trades. With this tool, you can reckon online a would-be result of any trade, entering basic parameters.
Take advantage of a trader’s calculator by MSMAX to estimate the following parameters:
a margin size per trade
a pip value
All you need to do is enter a few basic data such as a particular financial instrument, the currency of your account, a trade size in lots, and leverage. Hence, you can reckon a trading plan for 300+ trading instruments that will save a lot of your time.
If you want to use a trader’s calculator by MSMAX, you do not have to register in advance or install any software. Parameters entered are processed online. The company’s powerful servers ensure flawless connection so that a trader can instantly figure out the best market entry point and other variants of a trade.
A pip value for currency pairs is calculated based on the current exchange rate of a particular pair.
Please take notice that 1 lot with MSMAX equals 10,000 units of a base currency.
Here are formulas for calculating a pip value of currency pairs and CFDs.
Calculation of a pip value:
Pip value = 1 * (number of lots)
Pip value = 1 / (USD/XXX) * (number of lots)
A pip value = (AAA/USD) / (AAA/BBB) * (number of lots)
Calculation of a pip value for CFDs:
Pip value = number of contracts * contract size * tick value
Why does MSMAX suggest a lot size of 10,000 instead of a standard lot size of 100,000 units of a base currency?
MSMAX offers its clients an opportunity to trade Forex applying three lot sizes in parallel within the same trading account. Three lot sizes are designated as Micro Forex, Mini Forex, and Standard Forex. To put this technology into practice, the company introduced an unconventional lot size of 10,000 units. For example, if a trade size equals 0.01 lot, this makes a pip value as low as $0.01. In other words, this is an absolute minimum that allows holders of accounts with $5,000 - $10,000 to manage their risks with utmost efficiency. Besides, a lot size of 10,000 units simplifies calculations of a pip value when opening positions.
Look at the following trade parameters:
Trade size is 0.01 MSMAX lot = pip value is $0.01
Trade size is 0.1 MSMAX lot = pip value is $0.1
Trade size is 1 MSMAX lot = pip value is $1
Trade size is 10 MSMAX lots = pip value is $10
Trade size is 100 MSMAX lots = pip value is $100
Trade size is 1,000 MSMAX lots = pip value is $1,000
A pip value is specified in a base currency of a currency pair’s quote.
MSMAX lots ensure convenient calculations and the possibility of trading three lot sizes inside the common trading account. This is a major advantage of trading conditions with MSMAX.