The Essential Tool for Every Trader
In the high-stakes world of trading, whether it is stocks on the NYSE, crypto on Binance, or forex pairs, mathematics is your only safety net. Emotional trading leads to losses; calculated trading leads to consistency. Our comprehensive Trade Calculator is designed to be your dashboard for planning every trade. It handles the complexity of leverage, fees, and risk management so you can focus on the charts.
How to Use the Trade Calculator
This tool adapts to various markets. Here is how to input your data correctly:
1. Trade Direction (Long vs. Short)
- LONG (Buy): You profit if the price goes UP. Calculation: (Exit - Entry).
- SHORT (Sell): You profit if the price goes DOWN. Calculation: (Entry - Exit).
Note: Short selling often involves borrowing assets, which is handled via margin/leverage logic here.
2. Investment & Leverage
- Investment Capital: This is your "Margin" or "Cost". The actual money you are putting up from your wallet.
- Leverage: A powerful double-edged sword.
If you invest $1,000 with 10x Leverage, your Position Size becomes $10,000.
Pros: Profits are multiplied by 10.
Cons: Losses are also multiplied by 10. A 10% move against you wipes out your entire account (Liquidation).
3. Entry & Exit Prices
Enter your planned entry price and your target exit price. The calculator determines the percentage move of the asset and applies your leverage multiplier to find the ROI (Return on Investment).
The Hidden Cost: Trading Fees
Many traders ignore fees, but they eat into profits significantly, especially with leverage.
- Maker Fee: Charged when you place a Limit Order (adding liquidity). usually lower (e.g., 0.02%).
- Taker Fee: Charged when you place a Market Order (taking liquidity). Usually higher (e.g., 0.04%).
Important: Fees are calculated on the Total Position Size (Leveraged amount), not just your margin. If you use 10x leverage, you pay 10x the fees relative to your capital.
Risk Management: The Holy Grail
Professional traders prioritize risk over profit. Use the "Risk Analysis" toggle to input a Stop Loss price.
Risk:Reward Ratio (R:R)
This ratio compares your potential loss to your potential gain.
Example: Risking $100 to make $300 is a 1:3 Ratio.
A ratio below 1:2 is generally considered poor strategy. Our calculator computes this instantly.
Understanding the Math Formulas
For the transparency of our users, here are the formulas used:
Real-World Trading Scenarios
1. Crypto Futures (Binance/Bybit)
Crypto markets are volatile. A 5% move in Bitcoin with 20x leverage doubles your money (100% ROI). However, a 5% drop liquidates you. Always use the Stop Loss calculator to ensure you don't lose more than 1-2% of your total portfolio on a single trade.
2. Stock Options
While options use "Contracts" (100 shares), the leverage logic is similar. If you buy a call option, you are essentially taking a leveraged long position.
3. Forex (Currencies)
Forex moves in "Pips" (small fractions). Leverage in Forex is typically very high (50x - 500x) because price movements are tiny. This calculator works perfectly for Forex if you treat the price inputs accurately.
Frequently Asked Questions (FAQ)
What is Liquidation Price?
This is the price at which your exchange closes your position because your margin has run out.
Formula (Long): Entry Price × (1 - (1 / Leverage)).
Our calculator helps you see how close your Stop Loss is to your entry to avoid liquidation.
Does this calculate funding fees?
Perpetual futures contracts charge "Funding Rates" every 8 hours. This tool calculates Entry/Exit trading fees only. Funding fees vary dynamically and are not included here.
Why is my profit lower than expected?
Did you account for fees? On a 50x leverage trade, a 0.04% fee equals 2% of your margin to open and 2% to close. You start the trade with a -4% loss immediately due to fees.
Can I use this for Spot Trading?
Yes! Simply set the Leverage to 1x. This will calculate standard buying and selling of assets without borrowing.