Top Forex Trading Tools
The Forex Trading Tools outlined below help traders manage their risk, understand how various currencies are related, and how much the different forex pairs move over various time frames. The statistics or indicators provided on this page include:
- An Economic Calendar to keep traders apprised of major scheduled economic announcements. If day trading, close all positions before an important news announcement is scheduled. Only begin trading again after the news has been released. If swing trading, be aware of major economic news announcements. If your stop loss is very close to the current price right before a major news announcement is released, and may wish to consider closing that position because important data releases can cause big price jumps/dumps making stop losses ineffective (your trade is closed at a much worse price than the stop loss price).
- Current Interest Rates in various zones is useful when taking longer-term positions that will be subject to rollover each night. Rollover is when you are debited or credited the interest rate differencial of the two currencies contained in a forex pair. For example, if you buy the NZD/USD, you have effectively bought the NZD and sold the USD. If the NZD interest rate is higher, you will receive a small interest payment into your account at 5pm EST each day. If you short the NZD/USD, you have sold the NZD and bought the USD. In this case, if the USD interest rate is lower than the NZD interest rate, you will be charged the interest rate differential each day at 5pm.
- Forex Correlation Statistics show how one currency pair relates to the movements of another. For example, one pair may move in a near identical fashion to another. In this case, pick one you like the best and trade it. Taking your full position size in both these currencies doubles your risk (or reward) because if you win or lose on one, you will likely have the same result in the other. Currency pairs may also move in opposite directions, which is also something to watch out for. See How to Use Forex Correlation Statistics for a more thorough outline of how to use forex correlation data.
- Forex Volatility Statistics show how much a pair moves, on average, over various time frames. This can help assess how long it could take the price to reach a price target, may aid in setting stop loss/target levels, and looking at volatility over time can show whether opportunity is increasing or decreasing. When a forex pair is moving a lot most experienced traders find it easier to jump in and out for quicker profits. When there is very little volatility, there are fewer worthwhile price moves to participate in and the spread/commissions will more readily eat into any profits that are made. For more on interpreting forex volatility, see How to Use Forex Volatility Statistics.
- The Pip Calculator shows how much a pip is worth based on which pair you are trading. Each currency is worth a different amount relative to other currencies. How much of a profit/loss is generated by each pip of movement is determined by the currency pair you are trading. Pip value is also affected by which currency your account is in.
Find these forex tools and statistics below.
Forex Trading tools: Economic Calendar
Current Interest Rates in Major Markets
CORRELATION AND VOLATILITY STATS CURRENTLY UNAVAILABLE. WORKING TO BRING THEM BACK.
In the meantime, an alternative data source has been provided.
Forex Daily Statistics – Forex Correlations
Forex Daily Statistics – Forex Volatility
Pip Value Calculator
The calculator shows many different currencies, giving you a good idea of various pip values.
Keep in mind that if you have a USD account, and the USD is the second currency in the pair (i.e. EUR/USD, GBP/USD, XXX/USD…) the pip value is $0.10 per 1000 (micro lot) traded.
For certain currency pairs, the pip value is so small that you won’t be able to see it (shows $0.00) if looking up a micro lot. If this happens, adjust the trade size to 10,000 or higher, and then divide the result by 10 to get the micro lot pip value.