NZTrading tools
Trading calculators
Estimate pip value, required margin, profit or loss, overnight swap and position size before you place a CFD trade. Each tool works from the values you enter, so you can plan a trade and weigh the risk in seconds.
The basics
What is a trading calculator?
A trading calculator is a free tool that helps you estimate the key figures behind a trade before you place it. The calculators below cover pip value, required margin, potential profit or loss, overnight swap charges and an appropriate position size.
They are estimates and do not pull live prices, so you stay in control of the numbers you enter. For the exact conditions on your account, check the ThinkTrader platform and the relevant trading conditions pages.
Pip value
Pip calculator
A pip calculator works out how much one pip of price movement is worth in money terms for a given trade size. Knowing the value of a pip helps you size a position and judge how much each move in the market is worth to you.
Trade size (lots)
Result
Estimate based on the values you enter. Shown in the pair's base currency.
units × (pip size ÷ rate) = pip value
Pip value by lot size
| Size | Units | 1 pip |
|---|
What the pip calculator does
A pip is the standard unit used to measure a price change in a currency pair. The pip calculator tells you the cash value of a single pip for your chosen trade size in the pair's base currency. This is the building block behind margin, profit and position size, so it is usually the first figure traders work out.
How pip value is calculated
Pip value = trade size in units × (pip size ÷ exchange rate)Worked example. For a 100,000 unit position on a pair with a pip size of 0.0001, the pip value is 100,000 × (0.0001 ÷ 1.11677), which is about 8.95 in the pair's base currency. A mini lot is about 0.90 and a micro lot about 0.09.
Required margin
Margin calculator
A margin calculator shows how much of your own capital you need to set aside to open a leveraged position. Margin is a deposit, not a fee, but it is held while the position is open, so knowing it in advance helps you avoid overcommitting your account.
Trade size (lots)
Result
Estimate in the pair's quote currency. Requirements vary by account and instrument.
units × (price ÷ leverage) = margin
What the margin calculator does
Leverage lets you control a larger position with a smaller deposit. The margin calculator works out that deposit, called the required margin, for the position you are planning. It first finds the full notional value of the trade and then divides it by your leverage to give the amount your account needs to hold.
How required margin is calculated
Notional value = trade size in units × current price
Required margin = notional value ÷ leverageWorked example. A 10,000 unit position at a price of 1.10 has a notional value of 11,000 in the quote currency. At 1:30 leverage the required margin is 11,000 ÷ 30, which is about 366.67 in the quote currency.
Profit and loss
Profit and loss calculator
A profit and loss calculator estimates the result of a trade based on your open price, close price and trade size. Running the numbers before you trade helps you set realistic targets and see how a stop loss or take profit level would translate into money.
Position
Trade size (lots)
Result
Gross figure before spread, commission and swap.
Units × (Close − Open) = P&L
What the profit and loss calculator does
This calculator estimates the gross profit or loss on a position, before any spread, commission or swap. It multiplies the price movement by your trade size, which gives the result in the quote currency. A positive figure is a profit and a negative figure is a loss.
How profit and loss is calculated
Buy: result = trade size in units × (close price − open price)
Sell: result = trade size in units × (open price − close price)Worked example. Buying 100,000 units at 1.10000 and closing at 1.10500 is a movement of 0.00500. Multiplied by 100,000 units that is 500 in the quote currency, so the result is a profit of 500.
Overnight swap
Swap calculator
A swap calculator estimates the interest charge or credit applied for holding a position overnight. Swap can add up on positions held for several days, so it is worth checking, especially for longer term trades.
Trade size (lots)
Result
Points for FX, metals and commodities. Percentage for indices and equities. Estimate only, confirm rates against the platform.
rate × point value × nights = swap
What the swap calculator does
When you hold a leveraged position overnight, an interest adjustment called a swap is applied. It can be a charge or a credit depending on the instrument and the direction of your trade. Whether a position is held overnight is set by the instrument's market hours. This calculator estimates that adjustment from the swap rate you enter, the size of your position and the number of nights held.
How swap is calculated
ThinkMarkets uses two swap conventions depending on the instrument. FX, metals and commodities use a points method, while indices and equities use a percentage method. Use the toggle above the fields to match the instrument you are trading.
Points method
Point value = pip size × trade size in units
Swap = swap rate in points × point value × nightsPercentage method
Swap = (trade size in lots × current price × percentage ÷ 100) ÷ 360 × nightsWorked example, points. A 100,000 unit position with a pip size of 0.0001 has a point value of 10 in the quote currency. A long swap rate of 1.34 points over one night gives 1.34 × 10, a credit of about 13.40 in the quote currency.
Worked example, percentage. For an index priced at 5,000 with a swap rate of 3 per cent on one lot over one night, the swap is (1 × 5,000 × 3 ÷ 100) ÷ 360, about 0.42 in the quote currency. Swap rates are set per instrument and change over time, so always check the current rate.
Position sizing
Position size calculator
A position size calculator works out how large a trade should be so that a losing trade only costs you a set share of your account. It turns a risk rule, such as risking one per cent per trade, into a specific number of units.
Result
Assumes the pip value per unit is in your account currency. Estimate only.
risk ÷ (stop × pip value) = units
What the position size calculator does
Position sizing is one of the main tools for managing risk. Rather than guessing how many units to trade, this calculator starts from the amount you are willing to lose and your stop loss distance, then works back to the largest position that keeps the loss within your limit. It is the reverse of the profit and loss calculation.
How position size is calculated
Amount at risk = account balance × risk percentage
Pip value per unit = pip size
Position size in units = amount at risk ÷ (stop loss in pips × pip value per unit)Worked example. With a 500 balance, a 1 per cent risk and a 50 pip stop loss on a pair with a pip value per unit of 0.0001, the amount at risk is 5. The position size is 5 ÷ (50 × 0.0001), which is 1,000 units, or 0.01 of a standard lot.
Good to know
Frequently asked questions
What is a trading calculator?
A trading calculator is a free tool that helps you estimate the key figures behind a trade before you place it, including pip value, required margin, potential profit or loss, overnight swap charges and an appropriate position size. It lets you plan a trade and manage risk using values you enter yourself.
How do you calculate the value of a pip?
Pip value is your trade size in units multiplied by the pip size and divided by the current exchange rate. For example, a 100,000 unit position on a pair priced at 1.11677 with a pip size of 0.0001 has a pip value of about 8.95 in the pair's base currency. Smaller lot sizes scale down in proportion, so a 1,000 unit micro lot is about 0.09.
How is required margin calculated?
Required margin equals the notional value of the position divided by the leverage. The notional value is your trade size in units multiplied by the current price. For example, 10,000 units at a price of 1.10 is a notional value of 11,000, and at 1:30 leverage the required margin is about 366.67 in the quote currency.
How do you work out profit or loss on a trade?
Profit or loss in the quote currency is the price difference multiplied by your trade size in units. For a buy position the difference is the close price minus the open price, and for a sell position it is the open price minus the close price. Convert to your account currency if it differs from the quote currency.
What is a swap in trading?
A swap is the interest charge or credit applied for holding a leveraged position overnight. It depends on the size and direction of your position and the financing rate for the instrument. Swap rates are set per instrument and can be positive or negative, and an extra charge often applies on one day of the week to account for the weekend.
How do you calculate position size?
Position size is the amount you are prepared to risk divided by your stop loss distance multiplied by the pip value per unit. First find the risk amount by multiplying your account balance by your chosen risk percentage, then divide it by the stop loss in pips multiplied by the per unit pip value to get the position size in units.
Do these calculators use live prices?
No. The calculators work entirely from the values you enter, so the results are estimates rather than real time figures. Live pip values, margin requirements and swap rates depend on the instrument, your account type and your leverage, and are shown in the ThinkTrader platform and on the relevant trading conditions pages.