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

Tactile editorial illustration representing the risk reward ratio calculationTrading calculations · 6 min readRisk-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 →Tactile editorial illustration representing the stop loss and take profit calculationTrading calculations · 6 min readHow to Calculate Stop Loss and Take Profit: Formula and InputsThis calculation converts percentage distances into price levels around an entryRead guide →Tactile editorial illustration representing the dividend yield calculationTrading calculations · 6 min readHow to Calculate Dividend Yield: Formula and InputsDividend yield relates annual dividend per share to the current share priceRead guide →Tactile editorial illustration representing the dividend reinvestment calculationTrading calculations · 6 min readHow to Calculate Dividend Reinvestment: Formula and InputsDividend reinvestment compounds by using cash distributions to acquire more shares, which can then generate later distributionsRead guide →Tactile editorial illustration representing the stock split calculationTrading calculations · 6 min readHow to Calculate Stock Split: Formula and InputsA stock split changes units, not the total position value at the split momentRead guide →Tactile editorial illustration representing the portfolio rebalancing calculationTrading calculations · 6 min readHow to Calculate Portfolio Rebalancing: Formula and InputsRebalancing compares current asset values with target weights at the same total portfolio valueRead guide →Tactile editorial illustration representing the inflation adjusted return calculationTrading calculations · 6 min readHow to Calculate Inflation Adjusted Return: Formula and InputsReal return measures purchasing-power change rather than simply subtracting prices in currency termsRead guide →Tactile editorial illustration representing the margin and leverage calculationTrading calculations · 6 min readHow to Calculate Margin and Leverage: Formula and InputsLeverage scales market exposure relative to the capital posted as marginRead guide →Tactile editorial illustration representing the pip value calculationTrading calculations · 6 min readHow to Calculate Pip Value: Formula and InputsPip value translates a small exchange-rate movement into account currencyRead guide →Tactile editorial illustration representing the long call option profit calculationTrading calculations · 6 min readLong 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 →Tactile editorial illustration representing the capital gains tax calculationTrading calculations · 6 min readHow 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 →Tactile editorial illustration representing the crypto profit calculationCrypto calculations · 6 min readHow 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 →