See the effect of compounding on your Forex strategy
Forex Compounding Calculator
Welcome to LiveCharts Forex Compounding Calculator. Using our compounding calculator here will help you get an idea of how your gains could grow in time if you look to trade for a certain percent gain every period.
So what is this tool? Basically, it is a calculator that allows to enter the number of periods and the percent gain you expect to receive per period. Then it will display the numbers that you can expect when your investment starts to work. You will see how the investment of a certain sum will grow over time.
Large sums can come from the effect of compounding gains. If you don’t take out the profit and reinvest it you will get more and more funds each period. The next period earning is based on the increased sum, meaning that gains are compounding at the same percent rate. It is often referred to in economic terms as “interest on interest”. If understood and used right it can transform seemingly small profits into huge sums of money, but as always there are risks and position size to take into account, to use such a strategy correctly and safely.