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The use of a forex calculator saves time, eliminates mistakes, which are very easy to do otherwise, and provides a basis for succesful trading. Unlike handheld calculators and the use of formulas where one has to enter the data in a serial way, hence entering the wrong number is quickly overlooked, embedded forex calculators work like spreadsheets. All data are seen at one glance, mistakes are corrected right away. And also The trader can view the numbers of different hypothetical trades at very fast speed, such as:
Carry traders don't have to be fast, but they have to be extremely accurate with numbers and know how to work out interest rate charges and credits. A small miscalculation and the trading plan will fall apart soon. Every forex exchange rate is unique and has unique interest rate differentials, which can be used in various Carry trade strategies. Accuracy of several decimal points is absolutely essential. And if the trade is very large, then accuracy has to extend over more decimal points. Overlooking just one decimal point may prove costly, to the tune of hundreds of thousands of dollars per day on interest rate alone. Carry traders can also extend their strategies to arbitrage and trade different currency pairs for interest rate gain, while offsetting market price risk through other correlated pairs that tend to move by the same magnitude, but have very different interest rates. Here the trade becomes even more difficult as not only the interests rates but also the correlation numbers have to be calculated accurately. Except that interest rate is a fixed number, whereas correlation is a statistical, kind of dynamic number. The strategy does work though, and the longer the time frame, the more accurate it will be. As correlation is a long term relationship.