# Blog

### How Forex Calculators can help your Forex Trading

**Our Forex Calculators**

At this link https://fxtradingpro.com/forex-calculators/, the reader will find five forex calculators, each designed to make your forex trading easier.

**Pip Calculator**

A pip, in most currency pairs, is the fourth decimal place in the price. If you are long in GBP/USD, and the price move from 1.1111 to 1.1112, you have gained one pip. You sometimes see a fifth decimal place, which is a fraction of a pip.

When you are planning your trades, you should be managing risk by considering position size – how much will you risk on this very risky trade? How much will you put down for this fairly safe trade?

To calculate position size, you need to know the value of a pip. Our forex calculator tells you what the value is when you input your account currency. The calculator then provides price, pip value for a standard lot, pip value for a micro lot, and just the basic pip value itself.

**Margin Calculator**

Margin, in forex, is the amount of actual cash you must put down to make a trade. It is closely linked to leverage, because the more margin that is required, the more actual cash must be put up with less leverage in the trade.

Your broker will have fixed requirements for margin and leverage – and traders must always be attentive to how much leverage they are taking on at the risk of large losses. We cite typical margin requirements and the corresponding leverage:

| |

50% | 2:1 |

3.33% | 30:1 |

2.00% | 50:1 |

0.5% | 200:1 |

The Forex Calculator to calculate the margin required, input the account currency, the currency pair, the margin rati, and the trade size. Click on “Calculate,’ and you’ll see the margin used in US$.

**Fibonacci Calculator**

A Fibonacci retracement is used to identify support and resistance levels. It is based on the sequence of numbers identified by the 13^{th} century mathematician Leonardo Fibonacci. The important aspect of it in forex trading is the ratios determined by the numbers in the series.

A Fibonacci retracement is created by taking a high point and a low point in a price movement and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

Choose between an uptrending retracement, and one that is downtrending.

Enter the high point for the currency in the first box, and the low point in the second box. If you use a custom ratio, input it in the “Custom” box.

**Pivot Point Calculator**

A pivot point is a calculation intended to identify support and resistance. Many forex traders use pivot points as, like a Fibonacci retracement, it uses mathematics to show what the market will do.

The classic pivot point is simply the average of the high, low and closing prices from the previous trading day.

Here is how it works:

- Calculate the pivot point: (High+Low+Close)/3.
- Now calculate the support and resistance levels.

First Resistance Level: (2 times the Pivot Point) – Low.

Second Resistance Level: Pivot Point + (High-Low)

Third Resistance Level: High +2 (Pivot Point-Low).

- Now calculate the Support Levels.

First Support Level: (2 x Pivot Point) – High

Second Support Level: Pivot Point– (High – Low)

Third Support Level: Low-2(High-Pivot Point).

The other three types of pivot points indicated in the forex calculator use different calculations for the pivot point, and for support and resistance. * Woodie's* formula gives more weight to the closing price of the previous period to calculate the pivot point and the resistance and support levels. The principle is the same as above, however, so just input the info requested in the calculator and you’ll get your answers.

**Profit Calculator**

This forex calculator pretty much speaks for itself but is very handy in the midst of a complicated trading day.

Just input the basic elements of your trade, and see what you’ve hopefully earned (or sadly lost).