The forex market can be a tricky one. The size of positions, pips calculations, stop loss, and take profit placements – all of these figures can be quite confusing even for the most experienced forex traders.
But luckily, for every problem, there’s a solution and nowadays, there are lots of trading tools that can help you focus on trading rather than spending precious time calculating lot sizes and pip values.
So, below, we suggest the three top free forex trading tools that you should use in forex trading.
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Top 3 Trading Tools that Every Forex Trader Should Use
Here are the top 3 trading tools that can help your Forex trading efforts:
Lot Size Calculator
Calculating the size of a position in forex is not a fun thing to do. For many people, and especially beginners, it’s simply a hassle. They are confused and riddled with some crucial information such as the size of the position, and the initial investment required to enter a trade.
The solution – lot size calculator. With this tool, you simply enter the data of the desired trade and get the following information: position lot size (in lots), risk amount (the amount required to open the position), and the percentage of the total account balance used to open the position.
That’s what a lot size calculator does. A very simple and effective tool.
Pivot Point Calculator
Certainly, one of the best trading tools you can use in forex trading is the Pivot Point Calculator. This tool basically gives you support and resistance levels to enter and exit trades in the forex market. In some cases, it includes different types of pivot point measurements such as Floor, Woodie, Camarilla, DeMarket, and the most famous of all – Fibonacci supports and resistance levels.
The reason why this tool is so important is that many forex traders look at the same numbers and use the same Pivot levels – a phenomenon known as herd behavior. Consequently, these levels become crucial and used by traders to find entry and exit points.
To use this tool, all you have to do is to enter the previous day’s opening and closing prices, and the previous day’s high and low prices (as you can see in the image below).
Forex Swap Calculator
Finally, another useful trading tool is the forex swap calculator. For those unaware, swap in forex trading refers to the interest rate you’ll have to pay or receive for holding a position overnight. In some cases, swap rates can add up and become a substantial cost you have to pay or a very nice income. Either way, you need to be aware of swap rates before you enter a position.
That’s why you need to use a forex swap calculator, especially when you start trading forex. To use this tool, you need to insert the currency pair you want to buy or sell, the deposit currency, the lot size, and the number of nights you expect to leave the position open. In return, you’ll get the amount you can receive or pay for opening a certain forex position (swap long and swap short).
The Bottom Line
To sum up, you want to do whatever you can to totally focus on trading and maximizing the chances of success as a forex trader. Trading is not an easy task so you better use any tool that might help you and make your trading journey smooth and steady. For that reason, using the free tools above can make your trading experience far more efficient and hopefully, far more profitable.
