Singapore Forex Calculator - Currency Exchange Calculator

Forex Market Basics:

• Currency Pairs: Always traded in pairs (EUR/USD, GBP/JPY)
• Base Currency: First currency in the pair
• Quote Currency: Second currency in the pair
• Exchange Rate: Price of base currency in quote currency

Trading Concepts:

• Pip: Smallest price movement (usually 0.0001)
• Spread: Difference between bid and ask prices
• Leverage: Borrowed capital to increase position size
• Margin: Required deposit to open leveraged position

Position Types:

• Long Position: Buying base currency, expecting appreciation
• Short Position: Selling base currency, expecting depreciation
• Lot Size: Standard unit of trading (100,000 units)
• Mini Lot: 10,000 units of base currency

Major Pairs (involving USD):

• EUR/USD: Euro vs US Dollar (most traded)
• GBP/USD: British Pound vs US Dollar
• USD/JPY: US Dollar vs Japanese Yen
• USD/CHF: US Dollar vs Swiss Franc
• AUD/USD: Australian Dollar vs US Dollar
• USD/CAD: US Dollar vs Canadian Dollar
• NZD/USD: New Zealand Dollar vs US Dollar

Minor Pairs (cross currencies):

• EUR/GBP: Euro vs British Pound
• EUR/JPY: Euro vs Japanese Yen
• GBP/JPY: British Pound vs Japanese Yen
• CHF/JPY: Swiss Franc vs Japanese Yen
• EUR/CHF: Euro vs Swiss Franc
• AUD/CAD: Australian Dollar vs Canadian Dollar

Exotic Pairs (including emerging currencies):

• USD/SGD: US Dollar vs Singapore Dollar
• USD/HKD: US Dollar vs Hong Kong Dollar
• USD/CNY: US Dollar vs Chinese Yuan
• EUR/SGD: Euro vs Singapore Dollar

Position Sizing:

• 2% Rule: Never risk more than 2% of account per trade
• Position Size Formula: (Account × Risk%) ÷ (Entry - Stop Loss)
• Lot Size Calculation: Based on risk tolerance and stop loss
• Diversification: Spread risk across multiple pairs

Stop Loss and Take Profit:

• Stop Loss: Automatic exit to limit losses
• Take Profit: Automatic exit to secure gains
• Risk-Reward Ratio: Minimum 1:2 ratio recommended
• Trailing Stops: Dynamic stop loss adjustment

Leverage Management:

• Conservative Leverage: 1:10 to 1:20 for beginners
• Moderate Leverage: 1:50 to 1:100 for experienced
• High Leverage: 1:200+ only for professionals
• Margin Call: Forced closure when margin insufficient

MAS Policy Framework:

• Exchange Rate Policy: SGD managed against basket of currencies
• NEER Band: Nominal Effective Exchange Rate management
• Policy Reviews: Semi-annual monetary policy statements
• Intervention: MAS intervenes to maintain stability

Economic Drivers:

• Trade Surplus: Consistent current account surplus
• Financial Hub: Banking and finance sector strength
• Manufacturing: Electronics and petrochemicals exports
• Tourism: Service sector contribution

SGD Trading Characteristics:

• Low Volatility: Stable currency with managed float
• Asian Hours: Most active during Singapore trading session
• Correlation: Often moves with regional currencies
• Liquidity: Good liquidity in major SGD pairs

MAS Oversight:

• Licensing: Forex dealers must be MAS licensed
• Capital Requirements: Minimum capital for brokers
• Client Protection: Segregated client funds
• Reporting: Regular regulatory reporting requirements

Investor Protection:

• Compensation Scheme: Limited protection for retail investors
• Disclosure: Risk warnings and product information
• Leverage Limits: Maximum leverage restrictions
• Complaint Resolution: FIDReC dispute resolution

Tax Implications:

• Trading Profits: May be subject to income tax
• Professional Traders: Business income treatment
• Casual Trading: Generally not taxable
• Record Keeping: Maintain detailed trading records

Risk Management Errors:

• Over-leveraging: Using excessive leverage
• No Stop Loss: Trading without risk limits
• Risking Too Much: Exceeding 2% rule per trade
• Revenge Trading: Trying to recover losses quickly

Psychological Mistakes:

• Emotional Trading: Fear and greed driving decisions
• Overconfidence: Taking excessive risks after wins
• Analysis Paralysis: Over-analyzing and missing opportunities
• Lack of Discipline: Not following trading plan

Technical Errors:

• Poor Timing: Entering trades at wrong times
• Ignoring Fundamentals: Only using technical analysis
• Overtrading: Taking too many positions
• No Trading Plan: Trading without clear strategy

Is forex trading legal in Singapore?

Yes, forex trading is legal in Singapore. However, brokers must be licensed by MAS, and traders should use regulated brokers for protection.

What is the minimum amount to start forex trading?

Many brokers allow accounts from $100-500, but $1,000-5,000 is recommended for proper risk management and meaningful trading.

How much leverage can I use in Singapore?

MAS has implemented leverage limits for retail clients, typically capped at 1:20 for major pairs and lower for exotic pairs.

Are forex profits taxable in Singapore?

For casual traders, forex profits are generally not taxable. However, professional traders may need to pay income tax on profits.

What are the best currency pairs for Singapore traders?

USD/SGD, EUR/USD, GBP/USD, and USD/JPY are popular due to liquidity and Singapore's trading hours alignment with Asian markets.