A CFD calculator is a tool that enables you to work out the hypothetical profit or loss of a CFD trade. The tool clarifies how much you would stand to earn or lose if the price plays out in either direction, according to the leverage of the asset and the chosen order size.

A CFD calculator works by processing variable inputs such as investment size and leverage to calculate profit and loss for a hypothetical CFD trade. First, you enter a start and end date for a position on a selected asset. Then, you select the leverage and investment (order size) and choose a long or short position. The calculator shows the resulting profit if the market goes for you, or the loss if the market goes against you.

A CFD calculator can help you plan and refine your strategies. For example, you may want to see how a certain risk/reward ratio affects your hypothetical return and downside for a given asset. The CFD calculator can help you choose the order size and asset you are comfortable trading before you open a position.

Yes, you can use a CFD calculator for both long and short positions.

Our CFD trading calculator is programmed to provide accurate mathematical information for hypothetical trades based on the input data. However, it only provides estimates, which should not be taken as definitive predictions of future performance. Also, the calculator does not account for charges such as spreads and overnight funding, meaning users should factor in such fees in their hypothetical calculation.