# Simply fill in the form below and click “Calculate” button.

We recommend that you only trade with amounts on which you are willing to accept the risk of losses. Forex Compounding Calculator calculates monthly interest earnings based on specified https://zenodo.org/record/5171825 Starting Balance, Monthly percent gain and Number of Months, and outputs the result both as a chart and a table. Simply fill in the form below and click “Calculate” button.

The daily reinvest rate is the % figure that you wish to keep in the investment for future compounding. As an example, you may wish to reinvest 80% of the daily interest/earnings you receive and withdraw the other 20% in cash.

## Compounding Strategy

Daily compound interest is calculated using a simplified version of the compound interest formula. Multiply your principal amount by one plus the daily interest rate raised to the power of the number of days you’re investing for. Subtract the principal figure from your total if you want just the interest figure.

For example, let’s say you are trading 1 lot of EUR/USD with the account currency being EUR. In that manner, the fund would appreciate your defensive capital protection. And on the winning side, you will probably be much faster to achieve the fund’s milestones that will grant you more capital to trade with and earn your living from. The next requirement to make the system work is that your trade success rate has to be above 51%. You need to be successful from your entry to the exit rate at more than half the time.

### Sharp Steep Gain Curve When You Profit

When you have a worthwhile investment, compounding the interest will have a substantial long-term impact on it. Albert Einstein once said that compounding is one of the most potent forces in the universe. The interest earned over the investment can double or triple the returns, even if there is a daily or monthly constitution. You can also change the colours of the compounding calculator widget, the top pane, the bottom pane, button and title styling with basic knowledge and minimal effort. For example, If you have \$1000 in the account balance and you opened a trade by risking 1% (\$100) then within 24 hours you made a profit of \$100.

• To calculate the profits from your forex trading, we enter your starting balance, percentage and number of months into the compound interest formula.
• If your initial investment is \$5,000 with a 0.5% daily interest rate, your interest after the first day will be \$25.
• Check the amounts that are due or will be credited to your account for positions that are held overnight.
• This means that by compounding just 6 winning trades and taking a low profit percentage of only 2% per trade, the account balance has grown by 12.6%.
• An account can compound in the stock market by reinvesting dividends, while you can reinvest your profit in the forex market.