Guides
Understand the number, not just the answer.
Short, practical explainers for the calculations that shape trades, prices and business decisions.
62 guides · Page 2 of 6
Risk-Reward Ratio: What 2:1 Actually MeansA risk-reward ratio compares the distance from entry to stop with the distance from entry to targetRead guide →
How to Calculate Stop Loss and Take Profit: Formula and InputsThis calculation converts percentage distances into price levels around an entryRead guide →
How to Calculate Dividend Yield: Formula and InputsDividend yield relates annual dividend per share to the current share priceRead guide →
How to Calculate Dividend Reinvestment: Formula and InputsDividend reinvestment compounds by using cash distributions to acquire more shares, which can then generate later distributionsRead guide →
How to Calculate Stock Split: Formula and InputsA stock split changes units, not the total position value at the split momentRead guide →
How to Calculate Portfolio Rebalancing: Formula and InputsRebalancing compares current asset values with target weights at the same total portfolio valueRead guide →
How to Calculate Inflation Adjusted Return: Formula and InputsReal return measures purchasing-power change rather than simply subtracting prices in currency termsRead guide →
How to Calculate Margin and Leverage: Formula and InputsLeverage scales market exposure relative to the capital posted as marginRead guide →
How to Calculate Pip Value: Formula and InputsPip value translates a small exchange-rate movement into account currencyRead guide →
Long Call Profit at Expiry: Premium, Strike and Break-EvenA long call held to expiry is worth the amount, if any, by which the underlying price exceeds the strikeRead guide →
How to Estimate Capital Gains Tax on a Share SaleA capital-gains estimate starts with sale proceeds, subtracts cost basis and applicable costs, then applies the entered tax rate to a positive gainRead guide →
How to Calculate Crypto Profit After Trading FeesCrypto trade profit is the difference between sale value and purchase cost after both sides of the transaction are chargedRead guide →