# How to Trade Using the Forex Profit Calculator

A Forex profit calculator can be a very useful tool to a trader. In this article, we will talk you through how to use the Admirals Forex trading calculator and explain exactly what it shows you!

## What Is a Forex Profit Calculator?

A Forex profit calculator, or a trading calculator, allows you to enter the details about a specific trade you are planning to make and will give you, in return, your estimated profit, or loss, and costs associated with the trade.

The Admirals’ trading calculator provides a whole range of other information associated with your proposed, or completed, trade. In the following sections, we will look in detail at how to use our Forex profit calculator.

In order to use the trading calculator, you must first enter the details of your proposed trade. Below is an image of the parameters to be filled out.

• Lot: The size of your trade. 1 lot = 100,000 units of the base (first listed) currency.
• Leverage: The leverage you have access to on your Forex trading account. 1:30 is the maximum leverage available for a retail account, but this can go all the way up to 1:500 for a professional trader.
• Account Currency: The currency which you use in your account.
• Buy/Sell: Whether you are buying or selling the particular financial instrument.

Once everything has been filled out, press calculate in order to work out your Forex profit and other information. Below is an image of what the calculator will show you.

• Contract Size
• This shows the monetary value of the position in the account currency. As mentioned earlier, one lot is 100,000 units of the base currency.
• Tick
• This indicates the amount of decimal places the currencies are quoted to. Here it is 0.00001 or five decimal places. All Forex pairs are quoted to five decimal points, except for pairs quoted in the Japanese Yen (JPY) which instead are only quoted to three.
• Pip Value
• Pip value shows the monetary value of a single pip in the account currency. A pip in Forex represents a movement in the fourth decimal place of the currency, except for pairs quoting in the JPY where it is the second decimal place. Therefore, the calculator allows you to see the profit per pip for your trade.
• In the above example, every single digit movement in the fourth decimal place equates to £7.66.
• Swap Short and Swap Long
• A swap fee is interest charged on a position held overnight. It is different depending on whether you buy (long) or sell (short) the financial instrument in question. Depending on the underlying instrument this interest could either be negative or positive.
• Margin at Current Market Price
• The margin shows how much capital is required to open and maintain your position. This figure in the Forex trading calculator is based on the leverage you have access to.
• You will note in the first screen we selected a leverage of 1:30 - meaning that the amount of capital required to open the position = 100,000 / 30 = £3,333.33
• Commission
• Profit
• Finally, you can see the calculated profit, or loss, from your Forex trade!

## Final Thoughts

The Forex profit calculator is a useful tool to incorporate into your trading strategy. It can be used either when deciding to open a position or when looking at the costs and potential profit of your current position.

Using a trading calculator allows you to quickly access a lot of important information with a lot more ease than working it out for yourself with a calculator or an excel spreadsheet.

If you are interested in learning more about Forex trading, check out our beginner's guide to Forex!

If you are feeling ready to start trading on the live markets, Admirals allows you trade the Forex market 24 hours a day, 5 days a week! You also get FREE access to MetaTrader 5, the world’s number 1 multi-asset platform. Click the banner below to get started!