💹 How to use compound interest

Calculate how your deposit could grow in a year Calculate how your deposit could grow in a year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         [FBS]( [[fbsanalytics] FBS Analytics]( [Log in]( [FBS]( Leverage compound interest in trading Is trading a sprint or a marathon for you, {NAME}? People often treat trading as a sprint. However, like most everything in life, trading is more like a marathon where victory depends on patience, strategy, and endurance. Compound interest helps you win in the long run. Let’s see how much you will make in a single year with an initial deposit of $500. [Deposit now]( What is compound interest Simple interest The trading process usually goes like this: [fbs] Deposit [fbs] Trading & earning an interest [fbs] Withdrawal When you earn, you withdraw profits and start from scratch with a new deposit when you want to trade again. Compound interest Compound interest involves reinvesting profits from previous trades to increase the volume of future trades: [fbs] Deposit [fbs] Trading & earning an interest [fbs] Reinvesting the interest to trade [fbs] Trading [Learn more >]( Returns with compound interest [FBS]( E — the final balance D — the initial deposit Pwin — the percentage of profit per won trade Lloss — the percentage of loss per lost trade N — the number of trades WinRate — a portion of wins from the total number of trades (as a fraction of 1) Example of compound interest in trading When traders reinvest their profits in further trades, the effect can be impressive if they follow a wise strategy. Let’s consider an example here. [fbs] Deposit: $500 [fbs] Risk-to-reward ratio: 1 to 2 [fbs] Maximum loss in a single trade: 3% of the balance [fbs] Win rate: 50% [fbs] Crucial asymmetry • Our imaginary trader earns 6% of their investment for every win • The trader loses 3% for every lost trade This asymmetry is crucial: the wins are twice as large as the losses, so they mitigate the effect of losses. Profits in the long run Suppose you open a single trade every day for 200 days during a year. Here is what you will have in the end: Day   Win/Loss Balance ($) 1   WIn (+6%) [fbs] 530.00 2   Loss (-3%) [fbs] 514.10 3   WIn (+6%) [fbs] 544.95 4   Loss (-3%) [fbs] 528.60 5   WIn (+6%) [fbs] 560.31 ...   ... ... 200   Loss (-3%) [fbs] 8067.33 The deposit will grow by 1513% in a single year of trading. If you continue for another year following the same strategy, the balance would reach $130,163. Sounds appealing? So, decide on your strategy, make your deposit, and trade smart. We look forward to seeing you succeed! [Trade now]( [Learn more]( *FBS tips and analytics do not constitute a call to trade, trading advice or recommendation and are for information only. Was this email useful? [YES]( [NO]( [Help Center](  |  [Log in]( You received this email because you registered at [fbs.com](. If you have any questions, please contact us via email at support@fbs.com [google_play]( [apple_stor]( Risk warning: Before you start trading, you should completely understand the risks involved with the currency market and trading on margin, and you should be aware of your level of experience. [instagram]( [facebook]( [twitter]( [telegram]( [youtube]( [Web Version](  |  [About FBS](  |  [Unsubscribe]( Trusted by traders