May 10 2022 0
People usually ask me: Is XM really good? Since its establishment in 2009 from today, XM possesses about 1.5 million clients over 190 countries. Leading hundreds of seminars and visiting clients and partners over 120 countries. XM becomes an icon of inspiring brokers who have shared valuable experience with traders. Moreover, it is one of the top brokers in the world.
As forex became more complicated, XM came up with XM calculator tools to help traders set their limit of order easily by margin, leverage, swap, spread and so on.
Read our full XM review.
What is XM calculator?
XM calculator is a multifunctional tool consisting of currency converter, margin and swap, XM spread and commission calculator and so on. All of these key features will help you measure profit rate and risk score after which you can make decisions accurately and maximize your profits.
Currency converter is a tool that helps you convert value between currencies based on live rate 24/7.
It is very easy to operate, you choose one currency for the origin then choose another currency you want to convert to, input the amount of money you want then hit Enter.
The use of margin in forex trading is quite new and unfamiliar with traders. They might regard it as a fee or transaction cost.
Technically, It is a faith for collateral that traders deposit to open and hold a position in their account.
To calculate the margin for opening and holding specific positions, you must enter the currency for origin, then choose a currency pair for trading (it’s necessary for spread calculation) and the leverage. Enter the size of your position. The unit is random. Click Enter and you get the margin.
Here is the formula used to calculate margin:
Margin = (Trade size / Leverage) x Currency pair spread
Each currency pair has involved a swap that depends on the interest rate of the implementing countries despite the position being long or short. The interest rate of a currency pair is paid once the currency is sold or bought for receiving.
It is a weekly charge of swap. Depending on the selected financial institution, the trader will have a calculation basic os swap relying on risk-management analysis and market environment. The various swap charge is different from currency to currency and measure on the standard of 1.0 lot (100,000 base unit)
The calculating tool of swap is a support technique which helps you to predict the interest rate difference between currencies of trading. Firstly, input the base currency of your account. Second, select the currency that you intend to trade with (so, this is the spread). Lastly, adding your account type, trading size in lots and the expected leverage rate.
Here is the formula used to calculate swap:
Swap = (1 Point / Spread) x Trade size x Short swap value
Our pip value calculator will help you calculate the value of one pip in the currency you want to trade. This is extremely important information; it will help you to determine how much risk a trade will take and from there come up with an appropriate risk management plan.
The value of one pip will be calculated by multiplying the volume of the trade (in lots) by one pip in decimal, then dividing by the current exchange rate of the quote currency in your currency pair.
There is more to the XM calculator. To know more, click here.