Capital Expenditure Formula: An Introduction to Forex Trading

5 min read

Capital expenditure (CAPEX) formula in forex trading is a tool used to help traders understand the amount of money they need to invest in order to open a new trading position. The formula takes into account the size of the position, the leverage offered by the broker, the currency pair being traded, the price of the currency, the market volatility, and other related factors. Traders can use the CAPEX formula to calculate the optimal size of the position they would need to open to achieve their desired profit and risk targets. The formula is an essential component of effective forex trading, and its successful application can enable traders to make more informed decisions and maximize their trading returns.