While using our forex compounding calculator, you can forecast your forex trading account growth reliably. Our forex compounding calculator will help you to test your trading progress accurately.
What is forex compounding?
Forex compounding refers to the reinvestment of monthly or weekly profit in the initial balance. This Action will lead to growing your trading account exponentially. A little and consistent input will produce bigger output. This is called forex compounding.
For example, a forex trader earns around about 10% profit every month. As weekly profit can be in loss and in profit so we will use only monthly compounding. Starting balance was $10000. The first month he earns $1000 and he reinvested that amount in a trading account and now the total balance is $11000.
Next month, he earns $1100 and again he reinvested now the total balance is $12100. He continues this process and after 12 months he has $31384 in his account. This is a miracle of compounding is forex. A little input like 10% profit per month will produce 528% profit in one year.
Apply this 10% forex compounding plan on a real account and you will see the magic in a few months. This forex compounding plan will also decrease psychological issues because of only a few and effective trades to earn just 10% per month. Five trades in a month using 2% per trade risk will earn you 10% per month.
compound interest is the most powerful force in the universe.Albert Einstein
What is a forex compounding calculator?
A calculator which will determine forex trading account growth using compounding interest is called the forex compounding calculator. Use our compounding gains calculator to forecast yearly trading progress reports.
How to use compounding gains calculator?
Usage of forex compound calculator is very simple. Just three inputs
- Enter starting account balance
- Enter monthly profit percentage
- Enter Number of months
Which formula is used in the compounding calculator?
The formula used in our compounding calculator is
A = P(1+r)t
In this formula
- A = Ending account balance
- P = Starting Balance
- r = Monthly profit percentage
- t = Number of months
Note: All the viewpoints here are according to the rules of technical analysis. we are not responsible for any type of loss in forex trading.