The Redraft Trade Calculator is an essential tool for traders and investors looking to analyze potential trades, calculate profits and losses, and optimize positions. Whether you are trading stocks, forex, commodities, or crypto, understanding your potential gains and risks is critical for making informed trading decisions. This calculator streamlines complex calculations, allowing traders to evaluate trades quickly and accurately.

What Is a Redraft Trade Calculator?

A Redraft Trade Calculator is designed to help traders:

• Calculate potential profit and loss from a trade
• Evaluate different entry and exit points
• Adjust trade sizes for risk management
• Assess the impact of leverage
• Optimize position sizing for better returns

Unlike manual calculations, the tool provides instant results, allowing traders to make smarter, faster decisions without errors.

How the Redraft Trade Calculator Works

The calculator uses standard trading formulas based on entry price, exit price, trade size, and leverage to compute key metrics.

1. Profit and Loss (P/L) Calculation

Formula (Plain Text):
Profit/Loss = (Exit Price − Entry Price) × Number of Shares or Units × Contract Size

Example:

• Entry Price = $50
• Exit Price = $60
• Trade Size = 100 shares

Profit = (60 − 50) × 100 = $1,000

2. Risk per Trade

Formula (Plain Text):
Risk = (Entry Price − Stop-Loss Price) × Number of Shares or Units × Contract Size

Example:

• Entry Price = $50
• Stop-Loss Price = $45
• Trade Size = 100 shares

Risk = (50 − 45) × 100 = $500

3. Position Sizing Formula

Formula (Plain Text):
Position Size = Account Risk ÷ Risk per Unit

Where:

• Account Risk = Total money you are willing to risk on a trade
• Risk per Unit = Entry Price − Stop-Loss Price

Example:

• Account Risk = $1,000
• Risk per Unit = $5

Position Size = 1,000 ÷ 5 = 200 shares

4. Return on Trade (Percentage)

Formula (Plain Text):
Return (%) = (Profit ÷ Risk) × 100

Example:

• Profit = $1,000
• Risk = $500

Return = (1,000 ÷ 500) × 100 = 200%

How to Use the Redraft Trade Calculator

Step 1: Enter Trade Details

• Entry Price
• Exit Price (Target Price)
• Stop-Loss Price
• Number of Shares or Contract Size

Step 2: Enter Account Details

• Total account size
• Risk percentage per trade (optional)

Step 3: Click Calculate

The calculator computes:

• Profit or Loss
• Risk amount
• Position size
• Return on trade

Step 4: Analyze the Results

• Determine if the trade aligns with your risk tolerance
• Adjust trade size or stop-loss for safer management
• Compare potential returns to other trades

Examples of Redraft Trade Calculations

Example 1: Simple Profit Calculation

• Entry = $100
• Exit = $120
• Trade Size = 50 shares

Profit = (120 − 100) × 50 = 20 × 50 = $1,000

Example 2: Risk Assessment

• Entry = $100
• Stop-Loss = $90
• Trade Size = 50 shares

Risk = (100 − 90) × 50 = 10 × 50 = $500

Example 3: Position Sizing

• Account Risk = $1,000
• Risk per Unit = $10

Position Size = 1,000 ÷ 10 = 100 shares

Example 4: Return on Trade

• Profit = $800
• Risk = $400

Return = (800 ÷ 400) × 100 = 200%

Helpful Tips for Using the Redraft Trade Calculator

1. Always set a stop-loss to limit losses.
2. Adjust position size according to account risk tolerance.
3. Use realistic exit and entry prices to avoid overestimating profits.
4. Consider fees and commissions in calculations.
5. Recalculate if market conditions change.
6. Keep leverage in mind—higher leverage increases both risk and reward.
7. Use the calculator to compare multiple trades quickly.
8. Monitor trades and adjust risk management strategies as needed.

20 Frequently Asked Questions (FAQs)

1. What is a Redraft Trade Calculator?

It calculates potential profits, losses, position sizes, and returns for trades.

2. Can it handle stocks and forex?

Yes, it works for any tradable asset with entry and exit prices.

3. How do I calculate risk per trade?

Subtract stop-loss price from entry price and multiply by trade size.

4. Can I include leverage in the calculations?

Yes, leverage can be incorporated to calculate adjusted position sizes.

5. Does it calculate return percentages?

Yes, it shows ROI based on risk and profit.

6. Can I determine optimal position size?

Yes, based on account risk and stop-loss settings.

7. Is it suitable for day trading?

Absolutely, it’s ideal for short-term trade analysis.

8. Can I calculate multiple trades at once?

Yes, some calculators support batch calculations.

9. Does it consider commissions or fees?

Some versions allow input of trading fees to get net profit/loss.

10. Can it help with risk management?

Yes, it helps calculate safe position sizes according to account risk.

11. Can I use it for options trading?

Yes, enter option price and contract size to calculate risk and profit.

12. Does it calculate breakeven points?

Yes, by analyzing entry, exit, and stop-loss values.

13. Can I use it for futures contracts?

Yes, adjust for contract size to compute P/L accurately.

14. Is it suitable for beginners?

Yes, the calculator simplifies complex trade calculations.

15. Can it help improve trading strategy?

Yes, by comparing risk/reward ratios across trades.

16. Does it consider overnight margin requirements?

No, typically it calculates P/L based on price changes.

17. Can it calculate maximum loss?

Yes, using stop-loss and position size.

18. Can I use it for swing trading?

Yes, it works for all types of trading strategies.

19. How accurate are the calculations?

Very accurate if correct input values are provided.

20. Is it useful for professional traders?

Yes, it’s valuable for precise trade planning and risk management.

The Redraft Trade Calculator is a must-have for traders of all levels. It allows precise calculation of profits, losses, risk, and position sizing, helping users make informed decisions while minimizing risk and maximizing potential gains.