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You make ten winning trades in a row, and with each trade, you exit for a double risk profit. How much money do you have at the end of these ten winning trades in a row? You will have $102,400, which is a percentage return of 1024% of your initial investment! Before you get too excited, think about the fact that your chances of ten consecutive winning trades with two to one chance are approximately 1 in 169,000. The Forex compounding strategy is a simple yet effective way to grow your Forex portfolio, no matter what strategy you choose to use while trading.

  • A calculator that determines trading account growth using compounding interest on each trade in forex is called the forex compounding calculator.
  • Forex Compounding Calculator is the Forex trading tool that calculates the profit of next trade with profit added from previous trade to the initial account balance.
  • Now we will see how to Download Forex Plan Compounding Interest Calculator PRO for PC Windows 10 or 8 or 7 laptop using MemuPlay.
  • Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.
  • Forex Compounding Calculator to calculate how much money it would grow based on the percentage gain per month and the number of months to compound.

In Forex you trade Forex currency pairs like EUR/USD currency pairs, where you predict the price of EUR/USD moves up or down on the chart. The result you receive is the ending balance you will Forex get at the end of the selected period. Our Forex Compounding Calculator will create a balance table, indicating the account capital at the end of each month and the end of each period.

Final Thought on Forex Compounding Calculator

Use our simple yet powerful Forex Lot Size Calculator to calculate the exact position size for each trade and manage your risk per trade like a pro. If you Forex news compare this with a non-compounding investment, it would result in a balance total gain of only $120 since you would get a fixed $10 profit each year.

Shall the profit be withdrawn to reduce the risk, or should it be invested in trading? How much can be earned with those strategies in a month?

A Week in the Market: a Weak Dollar and a Flow of Statistics (5-9 December)

An account can compound in the stock market by reinvesting dividends, while you can reinvest your profit in the forex market. The FV function is handy when you want to calculate compound interest to estimate the future value of an investment. The details you’ll need to input are a rate, the number of periods, the periodic payment and the value of the initial investment. If you use compounding growth calculators on each trade then you can have several trades per day and after each trade you can grow your account. Monthly or daily compounding shows you that daily compounding is better than monthly with more than 20% of profit at the end of the first month.

forex compound calculator

Rule– Each trade you open should be positive if you calculate compounding for each trade. If dotbig review you use a time period instead of trade then you need to be profitable in that time period.