Understand your leverage exposure and calculate your effective leverage ratio.
Tool Status
Effective Leverage
1:10.8
High Risk
Multiplier
10.8x
Notional
$108,500
1% Move
$1085
Store this calculation, analyze compounding growth, and keep a clean history.
Pro Tip: Consistent use of this tool is one of the most important aspects of successful trading.
Leverage allows you to control a large position with a small amount of capital. A 1:100 leverage means $1,000 controls a $100,000 position.
Effective leverage is the actual ratio between your total open position size and your account equity. This is different from your broker's maximum leverage.
Understanding your effective leverage is crucial — even with 1:500 broker leverage, if your positions total 5x your equity, your effective leverage is only 1:5.
Pip Value
Calculate the monetary value of a pip for any currency pair and lot size.
Profit/Loss
Calculate potential profit or loss based on entry, exit prices, and lot size.
Margin
Calculate the required margin to open a leveraged forex position.
Compounding
Project your account growth with compound returns over time.
Position Size
Calculate optimal lot size based on your risk percentage and stop loss distance.
Risk/Reward
Visualize and calculate risk-to-reward ratios for your trade setups.
Broker leverage is the maximum allowed. Effective leverage is what you're actually using. If your broker offers 1:500 but you only open positions worth 10x your equity, your effective leverage is 1:10.
Most professionals use effective leverage between 1:1 and 1:10. Above 1:20 is considered high risk. Above 1:50 is extremely dangerous for most traders.
Leverage doesn't change pip value directly — it changes how many lots you can open. More lots = higher pip value per trade = more risk.