Blog
Practical, plain-English answers to the questions traders actually ask about position sizing, margin, pips, and the rest — each one linking straight to the calculator that does the math for you.
How to Calculate Pips on Synthetic Indices (Volatility, Boom, Crash)
Synthetic indices don't inherit forex's pip convention or any real market's standard — their point size is defined entirely by the platform. Here's what that means for sizing a trade.
The Forex Compounding Strategy (and Why a Calculator Beats a Spreadsheet)
Compounding means recalculating your position size from your account's current balance after every trade. Here's how it compares to fixed sizing, with a worked example.
What Is Leverage in Forex?
Leverage lets you control a larger position than your balance alone could support. Here's what the ratio actually means, who sets it, and what it does and doesn't change about…
Points vs. Pips: What’s the Difference?
"Point" and "pip" aren't always interchangeable. Here's how to tell which convention applies to what you're trading, and why mixing them up can throw off a calculation by 100x.
Profit Per Pip: What It Means and How to Calculate It
Profit per pip is the dollar amount you gain or lose for every pip the market moves at your current position size — the building block behind every forex P&L…
What Does “20 Pips” Mean in Dollars?
"20 pips" can mean $2 or $200 depending entirely on your position size. Here's the actual conversion from a pip count to a real dollar amount.
What Is Lot Size in Forex?
A lot is the standardized unit forex is traded in. Here's what standard, mini, and micro lots actually mean, and how lot size directly scales your risk.
How to Calculate Position Size
Position size is the number that actually determines your risk — more directly than your stop loss, leverage, or balance alone. Here's the formula and how it differs from "lot…
Margin vs. Leverage: What’s the Difference?
Leverage is a ratio your broker sets; margin is the dollar amount that ratio produces for a specific trade. Here's how to tell them apart, and why it actually matters…
Margin Call: What It Means and How to Avoid One
A margin call is triggered when your margin level falls too low — here's exactly what happens at each stage, and the concrete steps that keep you from ever reaching…
How to Calculate Risk/Reward Ratio in Forex
Risk/reward ratio compares your potential loss to your potential gain on a trade — and the right ratio can keep you profitable even while losing more trades than you win.
What Is a Pip in Gold (XAUUSD) and How to Calculate It
Gold doesn't use forex's 4-decimal pip convention — most platforms call it a "point" instead, and the exact value depends on your broker's own contract size.
How to Calculate Lot Size (Step-by-Step)
The exact formula for lot size, broken into four steps, plus the single most common mistake that throws the whole calculation off by orders of magnitude.
How to Calculate Pips on Bitcoin and Ethereum
Bitcoin and Ethereum don't have a universal "pip" the way forex pairs do. Here's why, and how to find and use your own broker's real point value.
DeMark Pivot Point Formula (With a Worked Example)
The DeMark pivot point produces one support and one resistance level, using a different formula depending on whether the prior session closed up or down. Here's the exact calculation with…
What Is a Pivot Point in Forex?
A pivot point is calculated from the previous session's high, low, and close to gauge where support and resistance might sit today. Here's the real formula, how to read it,…
What Is Margin in Forex?
Margin isn't a fee — it's the portion of your own balance your broker reserves while a leveraged position is open. Here's exactly how required margin, free margin, and margin…