Categories: Cash

Calculating Cash Flow in Forex Trading: A Step-by-Step Guide

Calculating cash flow in foreign exchange (forex) trading can be an important task for any trader.It requires traders to track cash inflows and outflows resulting from their activities. Cash flow includes taking into account costs associated with trading such as spreads, commissions, and any financing costs. It also includes tracking profits and losses generated from trades. To calculate cash flow, traders should add up their net activity, taking into account all costs and profits, and subtracting the total from their starting equity. Monitoring cash flow is essential to successful forex trading, as it ensures that traders can manage their funds and maintain positive balances.

Read More