Investments enable individuals to store money they are not using to get some income from it. However, one needs to be smart with their investments to get the maximum returns. You must calculate various factors to consider whether your investment decisions are correct.
But calculating the factors can be intimidating because they often demand complex formulae. Thanks to online calculators, figuring out the worthwhileness of investments has become more accessible. Dive into the blog to learn about the various easy-to-use financial calculators that help you make smart investments.
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Margin Calculator
A margin calculator is helpful for determining the amount that must be deposited with the broker. Margin calculators make margin calculations more accurate and reliable by considering the following:
- The risk-taking capacity of the brokerage house
- Balance in the trading account
- The stock price of the crisp
Margin calculators are also useful for determining the maximum losses in case the trade isn’t successful. The amount that needs to be deposited with the brokerage is the margin requirement of a trade. A margin calculator also enables traders to avoid the margin call, which refers to the notification pointing that one has gone beyond their margin requirement.
A margin calculator offers the following benefits:
- Traders are able to determine the margin amount to begin a trade.
- It enables traders to lay out a financial map of their trade which is valuable for understanding the economic impact of their decisions.
- A margin calculator is helpful in tracking transactions and understanding whether a broker is spending their funds somewhere else other than the transaction at hand.
- It is useful for setting up a risk level on trade and understanding how much traders can afford to lose.
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CAGR Calculator
A CAGR calculator is valuable for determining the true annual returns on investment. It won’t show you the absolute returns because CAGR takes into consideration the time factor. Therefore, the CAGR is a more effective indicator over a time period.
An online CAGR calculator can tell you the following things:
- Whether your business grows with time and the generated profits are accurately invested.
- It also throws light on your investment options. Suppose the CAGR indices of your stocks show that stock A is performing better than stock B. In that case, you can target more of your investments toward stock A.
- It also shows the relative growth of your business compared to market leaders in the industry.
- Suppose you purchased a few units of an equity fund in the past. But the value of the units has increased over time. A CAGR calculator can help you calculate the gains on your investment.
Ending Note
Enter the required details correctly to receive accurate results from these financial calculators. Happy investing, folks!
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