Formula

Total Debt Service Formula: Understanding & Calculating DSCR for Forex Trading

5 min read

The Total Debt Service (TDS) formula is an essential part of understanding foreign exchange (forex) markets. It is used to measure the total amount of interest paid for a loan as a percentage of total income. The TDS formula takes into account the current market rate of interest, the length of time the loan is being made for, and the amount of income paid.The TDS formula is important to understand because it can show the level of financial risk associated with a loan. As a borrower, understanding this formula can help keep debt levels in check and ensure that payments are made on time. By keeping the TDS formula in mind, forex traders are better able to evaluate debt levels and potential risks associated with various loan options.

Ratio

Calculating Stock Ratios for Forex Trading: Tips and Strategies

5 min read

Stock ratio forex is used to assess a company’s financial performance and compare it with the overall performance of the market. In order to calculate a stock ratio forex, investors must first understand the different types of stocks in forex. Primarily, investors must become familiar with common stock and preferred stock, which represent different levels of ownership and rights. Once knowledgeable, the investor can use the total amount of stock to calculate the percentage ownership of common stock. By comparing the market price of the stock to both the book value and net asset value, the investor can interpret the stock ratio forex to gain an overall picture of a company’s financial standing.

Ratio

Calculating Sharpe Ratio: A Guide to Forex Trading

5 min read

The Sharpe ratio is a popular tool used by Forex traders to measure the risk-adjusted return of an investment. It is calculated by subtracting the risk-free rate from the trading returns and then dividing that figure by the standard deviation of the returns. By using the Sharpe ratio, traders can measure how much excess return they are gaining for each unit of risk that they are taking on.

Formula

atr Formula for Forex Trading: Guide to Calculating Volatility

5 min read

The ATR Formula is a technical analysis indicator used in Forex trading. The ATR stands for Average True Range and is used to measure market volatility. The ATR Formula looks at the True Range of a trading period and takes the average of the true range over a given number of periods. This provides traders with an indication of the average volatility of a currency pair during a given period. The ATR Formula is a useful tool for those looking to enter the Forex market and protect their capital from volatility.

Cash

Calculating Free Cash Flow for Forex Trading: A Guide

5 min read

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Calculating free cash flow is a key part of corporate finance. Free cash flow measures the cash that a business generates from its operations after subtracting capital expenditures. This is an important number for investors to pay attention to, as it determines the money available to shareholders for paying dividends, making investments, and funding operations. To calculate free cash flow, you need to take the sum of the company’s cash flow from operating activities and subtract the cost of its capital expenditures. This gives you an understanding of how much money the company has left available to fund other activities.

Income

Calculating Debt to Income Ratios for Mortgage Approvals

5 min read

Debt to income ratio (DTI) is an important factor to consider when applying for a mortgage. It is calculated by dividing your total monthly debt payments by your gross monthly income. The lower your DTI, the more likely you will be able to get approved for a loan. Lenders prefer a low debt-to-income ratio because it ensures that a borrower can handle their monthly loan payments in addition to their other expenses. Borrowers with a high debt-to-income ratio may be viewed as too risky for a loan and may be turned down. It is important to maintain a healthy DTI to ensure you have a better chance of getting approved for a mortgage.

Formula

A Guide to Calculating Parlay Odds: Understanding the Formula

4 min read

A parlay is a bet that involves two or more outcomes. The odds of a parlay are calculated by taking the combined likelihood of all outcomes multiplied by the payout of the first outcome. For example, if you bet on two teams with odds of 2.0 and 3.0, the parlay odds would be 6.0 (2.0 × 3.0 = 6.0). The higher the odds of the individual outcomes, the higher the payout of the parlay. Parlay odds can also be calculated manually using a formula. The formula for calculating parlay odds is: Odds = (Payout of 1st outcome × Payout of 2nd outcome) + (Payout of 1st outcome × Payout of 3rd outcome) + …. This formula allows gamblers to calculate their potential returns when putting on a parlay.

Introduction to MQL5

SL/TP Lines in MT4: Calculating Profit & Loss

5 min read

The powerful ‘Profit/Loss’ line in MT4 Forex Trading Platform allows traders to quickly visualize the overall performance of their trading. This line provides traders with a clear view of their total profit or loss at any given time. The line is easily visible on the chart, giving clear insight into daily and long-term performance. This tool helps traders to stay on track with their goals and assist in setting limits on trading activity. With the Profit/Loss line in MT4, traders can remain confident that their trades are producing the expected result.