Forex Analysis & Reviews: US stocks closed lower, Dow Jones down % The CBOE Volatility Index, which is based on S&P options. Instaforex Review for South Africa - is Instaforex reliable? instaforex broker The internet is full of opportunities and options for forex traders. Brokers with volatility index products, such as the CBOE VIX 75, allow investors to measure risk or fear within a market and to capitalise on the resulting. SPORTS BETTING DOES OVER UNDER MEAN

Traders can download the MT5 platform for free in case they meet the system requirements. Multiterminal: The third kind of trading platform available on the InstaForex site is the functional Multiterminal. As the name suggests, this platform allows trading via several InstaForex accounts simultaneously.

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The InstaTick is said to make tick trades easy by providing six digital quotes. The best piece of advice for inexperienced or less-experienced forex traders is to carefully read the terms and conditions before making any decision to open a live forex trading account. Payment and Withdrawal methods InstaForex supports a multitude of payment methods accessible and functional in every corner of the world, for example, all bank cards and wire transfers, Qiwi, Yandex.

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Leverage Leverage on this broker platform starts at and goes up to a maximum of Maximum leverage for Europe-based users is in accordance with EU laws and regulations. The leverage increases with time if the account holder turns out to be an experienced forex trader.

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Plus, daily fluctuations are a challenge to keep up with. The regular evaluations of a volatility index can be repetitive and breathless, relying upon this takes up a large amount of time, with the reward unpredictable. A common occurrence in investing is when too much attention is paid to a short term number, rather than the bigger picture, which could be the case here. Day-to-day, there is limited benefit in monitoring the VIX, but on a month-to-month basis, you might gain much more.

It provides access to high leverage, tight spreads and a selection of two powerful platforms. There are 10 volatility index instruments available across margin trading, options or multipliers, allowing you to utilise almost any strategy. Plus, Deriv is known for its fast order execution and deep liquidity, making it ideal for small and large traders.

The account offers up to leverage, with fixed or variable spreads and market execution Deriv is also one of the few brokers with volatility index instruments that offers a free demo solution for clients to practice trading strategies.

Traders enjoy unlimited virtual funds for as long as needed, which is ideal for beginners looking to try out these exciting markets Platforms Positions are executed on the DTrader or MT5 platforms DTrader offers trading directly from charts with a real-time price feed for Rise up and Fall down , among others.

You can also open multiple index trades simultaneously, providing flexibility MT5 allows leveraged CFD investing using technical indicators and tools alongside a selection of plugins, signals and bots. Depending on the payment method chosen, there may be a minimum deposit or withdrawal amount.

Some methods may also involve a transaction fee The broker also offers low-pip spreads on CFDs and a useful calculator for margin and swaps on the website. This is a competitive rate vs alternative brokers with volatility indexes. Raw Spread accounts show raw inter-bank spreads received from liquidity providers. This varies depending on the stock exchange — starting at 0. When trading in a volatile market, there are a number of ways to stay ahead of the game.

Sentiment plays a large part in many strategies for stock markets, so with this in mind, a volatility index is useful. With that being said, an index still has its limitations and is far from perfect. Brokers with volatility index instruments may offer products on various major exchanges. Implied volatility is a prediction only.

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Nba betting articles	As the name suggests, this platform allows trading via several InstaForex accounts simultaneously. Investors use them to gauge market sentiment and to capitalise on potential price swings. Investing in volatility indices means capitalising on this. AstroPay, Litecoin, Tether, and local transfers in few selected countries are available for depositing money as other methods. Nonetheless, they do act like real monetary markets and are based on a cryptographic random number generator.
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Hoe te betalen met bitcoins wiki	The daily changes in the VIX show what has happened and what is happening now. Therefore, there is the risk that brokers with volatility indexes offer instaforex margin calculator cboe additional insights. Depending on the payment method chosen, there may be a minimum deposit or withdrawal amount. Is InstaForex regulated? The platform has many other lucrative bonuses, such as "bonus on every deposit," with varying stop-outs and leverages. Trade Forex on 0.
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Instaforex margin calculator cboe	How do I deposit into InstaForex? The regular evaluations of a volatility index can be repetitive and breathless, relying upon this takes up a large amount of time, with the reward unpredictable. Plus, Deriv is known for its fast order execution and deep liquidity, making it ideal for small and large traders. Options trading does not win instaforex margin calculator cboe bonuses from the broker company. Traders enjoy unlimited virtual funds for as long as needed, which is ideal api btc price beginners looking to try out these exciting markets Platforms Positions are executed on the DTrader or MT5 platforms DTrader offers trading directly from charts with a real-time price feed for Rise up and Fall downamong others. Traders can download the MT5 platform for free in case they meet the system requirements. First, all those who apply to open a new account on InstaForex are asked to accept the Public Offer Agreement to binding them into a legal constraint, which is considered a standard procedure in the forex trading world.
Market cap chart cryptocurrency	Similarly, these are not available for EU based users due to the stringent regulatory framework. What is the minimum deposit for InstaForex? The best time to trade the Volatility Index 75 is when the price reacts to previous support or resistance levels. Traders should look out for brokers that allow them to trade range markets as well as bullish and bearish. Any trader needs to be cautious because impulsive trading at times does more harm than anything else since market volatility widens spreads.
Zcash ethereum dual mining	Education InstaForex is considered one of those broker platforms which also offers forex trading training for interested individuals. Options trading does not win any bonuses from the broker company. InstaForex WebTrader consists of a fully functional and customizable tool kit and works on every calculator computer version. In order to withdraw the bonuses earned at InstaForex, one must have a live forex trading account. For beginners, InstaForex provides dedicated video tutorials to educate them about the main concepts instaforex margin currencies, quotes and spread involved in forex trading. Equipped with features like nine different frames, a plethora of tools for better technical analysis, locked positions, a set of free indicators and reliable advisors, and bit high-security encoding, MT4 is a perfect match for a one-click trading experience. As the name suggests, this cboe allows trading via several InstaForex accounts simultaneously.
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Here's where I'm going with this. I would argue that even if a portfolio used a little margin but had high quality trades of both kinds, it would be safer than a portfolio that didn't use margin but only employed one type of short options. For example, which portfolio would be lower risk? Or Portfolio B that uses no margin but trades only short puts or only bear calls? OK - that's a trick question.

The Sleep at Night Strategy, even when it only included short puts, always performed very well. And, of course, since we're able to repair just about any "bad" short put trade we find ourselves in, it rarely produced any actual losses. Market Loses. But the point here is that I think you can see how the inclusion of bear call spreads has taken something that was already in the GREAT category and made it even better.

That is, depending on how accurate we are in being able to correctly identify Limited Upside Situations. But based on our track record, I'd say we've done a very good job in that regard. Or in the modern, post-check world, swipe their debit card once too often when they don't have sufficient funds in their account? I don't know about others, but I've certainly done it. I've even had services cut off once or twice when I failed to pay an overdue account.

Note: these were rare occurrences, and it's not because I was broke, it was because I was neck deep in other things, projects, distractions, etc. And as someone who is self employed and trades full time, I don't have an employer who automatically deposits funds into my checking account. Or rather, I'm the employer who does that, and sometimes I forget.

That's where a checking account with good overdraft protection can come in handy. When it comes to selling puts, margin can be incorporated into your operations in a similar manner - not to accrue debt, but as a matter of convenience. How so exactly? Overdraft Protection Again, I liken this use to overdraft protection on your checking account. It's a convenience and designed so that you don't have to worry or always track your account super closely down to the penny.

So maybe your portfolio is fully engaged on a cash-secured basis and a new trade opportunity presents itself. If you're too legalistic about always being on a cash-secured basis, then you're either going to have to let the new opportunity pass, or you'll have to exit an existing trade earlier than you would've liked to free up capital.

In that way then, a little margin can get you into an attractive trade you otherwise would have to pass on. Bridging Trades and Opportunities Similarly, margin can also be used to bridge naked put trades and opportunities. Let's say you have a trade that's doing very well for you and it's set to expire in a few days, and you're not quite ready to lock in your profits to date.

And then you come across another very attractive trade. The problem? On a cash secured basis, you don't have the capital to open the new trade without closing the other one. Or maybe you're in a situation where it's late in the day on a Friday expiration and your position is out of the money and likely to expire worthless.

But the stock price is also near the money enough that you'd like to roll the thing out another month and collect another round of money. You can do that, of course, but a cheaper alternative would simply be to open up a new trade for the next month's expiration a little early rather than rolling the expiring position. Sure, most brokers treat a new trade and a roll with the same commission base, but you do also pay a smaller fee per contract and, of course, when you roll a short put trade, by definition you are paying something to buy back the old put.

Remember, Mr. Market is everyone in the stock market who isn't you - and that includes market makers and your own broker. If you're tired of buying Mr. Market lunch all the time, and want to treat yourself every now and then, employing a little margin in these kinds of scenarios is a valid - and not particularly risky - way of doing it. Part 6 - Selling Puts on Margin to Facilitate Trade Repairs I referenced trade repair and margin earlier in this article, but it's such an important topic that it definitely needs its own section.

The customized 4 Stage Short Put Trade Repair Formula that I personally developed much of it in a small lab on the campus of the School of Hard Knocks is an insanely effective and capital efficient trade repair system. That's because it not only takes the guesswork out of what adjustment to make on a short put trade gone awry, it also tells you the optimum time to pull the trigger.

And it's not a Hail Mary, you've-got-one-shot-to-turn-the-trade-around system. In fact, it doesn't run out of ammo unless the stock itself trades down to zero. But as part of that trade repair process, under certain circumstances, we will expand a trade by adding more contracts to our trade as a way to aggressively lower the strike price of our in the money position.

Let's look at how that works. Here it is: If you have unlimited capital, and the underlying stock doesn't trade down to zero, you should never lose money selling puts. This is based on another put selling principle - something I call the Double-Half Principle: In repair situations, by doubling the number of short put contracts you have in a position, you can effectively cut in half the distance between the current share price of the underlying and the strike price of your in the money short put s.

And since you wrote the put - i. A net credit on a roll occurs when you receive more for setting up your new short position - put or call - than what it costs you to exit or close out your old or expiring position. How far that option's strike price is to the current share price How much time remains until that option expires So it's a pretty safe bet that your new short option position when using the Double Half Principle is always going to have more time value than that of your old and expiring one.

That's because your new position, by definition, includes a lot more time and is at a more favorable strike price. But isn't that risky since you just doubled the size of the trade and it's still not repaired or out of the money? As always, you want to take everything on a case by case basis. Do this on a stock like Enron or Worldcom that really does trade down to zero, or do it too early in the process a big no-no , or do it when you have too little capital to commit, and you're only going to make matters worse.

But realistically, what's riskier? And who says you're done working the strike price lower? In fact, the closer you work the strike price back to the share price, the easier it becomes to continue adjusting the strike price lower without having to resort to adding more contracts. About That Unlimited Capital Thing: Let's go back to something I said earlier - about unlimited capital, and how if you had unlimited capital and assuming the underlying stock doesn't trade down to zero that there's no reason why you should ever lose money selling puts.

The obvious question - who has unlimited capital? And the obvious answer is that very few retail investors would be able to raise their hand. The 4 Stage Short Put Trade Repair Formula does include the possibility of or potential for expanding the number of contracts in an underwater trade. But it's something we use very sparingly and only later in the process and only under specific conditions and as part of a specific timing process.

It's all designed to preserve our capital while getting maximum effectiveness for those times when we do expand an in the money trade. In fact, in many cases when we add contracts, we only do so once, and sometimes we're even in a position to later reduce the size of the trade.

So we're hardly repeatedly doubling down like a drunken gambling addict at the craps table. Theoretically, margin could have a role to play in this process Margin gives you access to extra capital that you don't have, so that can definitely help, but you have to be careful Because if you use all your margin and the trade still isn't repaired, then you've just made matters worse. Your Kitchen is on Fire!

In addition to driving above the posted speed limit, margin can also be like having a fire extinguisher. But if the fire extinguisher is too small - or the fire in the kitchen is too large - then you're going to wish you would have focused on getting all the family members and pets out of the house instead of trying to put out the fire. Again, my personal mantra is to use margin to get yourself out of trouble, not into it.

As we've already noted, when you use too much margin up front, there's a potential double whammy effect: You place more capital at risk You have less capital available for repairs So it's like getting drunk with your friends and blasting each other with that fire extinguisher as part of the festivities. If a real fire breaks out, and your extinguisher is empty, you're not going to have any good choices. If that's the worst use, then what's the best use of margin? I do think there can be a conservative and sensible use of margin in an option selling portfolio.

And that does include the rationales we've already discussed: Incorporating some margin on a hedged portfolio that sells both puts and bear call spreads Using margin in the form of convenience Having access to margin for trade repairs when necessary The key, I think, isn't so much what you're using margin for as it is the degree to which you're using it. I would even go so far as to say that using a little margin to boost your returns a bit isn't the worst thing in the world and a guaranteed recipe for disaster.

Do you remember that Mae West quote? The amount of margin you use is arguably more important than the purpose for which you use it. Selling puts via a small amount of margin for the "vice" of boosting your returns is safer than overleveraging for more noble purposes. But the use of any kind of margin can be one of those slippery slope kind of things. When you use a little and nothing bad happens and, in fact, you only see the benefits then it can be tempting to use more.

And then some more. This is where option selling experience can help to ground you and why I recommend those who are new to selling options to avoid margin at first. If you do decide to sell puts on margin in some capacity, it's a good idea to set up some personal rules and limitations beforehand. You've got a lot of leeway here - and I see a couple of different ways of tracking and capping your margin usage: Total Margin Used as a Percentage of Your Portfolio Options Buying Power Method Note: What follows are examples to illustrate, not recommendations of specific target percentages or amounts.

It's interesting how some people prefer to calculate the markup, while others think in terms of gross margin. It seems to us that markup is more intuitive, but judging by the number of people who search for markup calculator and margin calculator, the latter is a few times more popular.

FAQ What's the difference between gross and net profit margin? Gross profit margin is your profit divided by revenue the raw amount of money made. Net profit margin is profit minus the price of all other expenses rent, wages, taxes etc divided by revenue. Think of it as the money that ends up in your pocket. While gross profit margin is a useful measure, investors are more likely to look at your net profit margin, as it shows whether operating costs are being covered.

Can profit margin be too high? While a common sense approach to economics would be to maximise revenue, it should not be spent idly - reinvest most of this money to promote growth. Pocket as little as possible, or your business will suffer in the long term!

There are also certain practices that, despite short term profit, will cost you more money in the long run, e. What is margin in sales? Your sales margin is the product of the selling price an item or service, minus the expenses it took to get the product to be sold, expressed as a percentage. These expenses include: discounts, material and manufacturing costs, employee salaries, rent, etc. While this is very similar to net profit, sales margin is in per unit terms. Subtract 0.

Divide the original price of your good by 0. What is a good margin? There is no definite answer to "what is a good margin" - the answer you will get will vary depending on whom you ask, and your type of business. Firstly, you should never have a negative gross or net profit margin, otherwise you are losing money. There is no set good margin for a new business, so check your respective industry for an idea of representative margins, but be prepared for your margin to be lower.

For small businesses, employees are often your main expense. How do I calculate margin in Excel? While it's easier to use the Omni Margin Calculator, it is useful to know how to calculate margin in Excel: Input the cost of goods sold for example, into cell A1. Input your revenue on the product for example, into cell B1. Right click on the final cell and select Format Cells. In the Format Cells box, under Number, select Percentage and specify your desired number of decimal places.

Take 0. Divide how much your item cost you by 0. Are margin and profit the same? Although both measure the performance of a business, margin and profit are not the same. All margin metrics are given in percent values, and therefore deal with relative change, good for comparing things that are operating on a completely different scale.

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No, but it can still be useful to get a better feel for how much margin trades actually require. Don't Forget Option Buying Power If the above Margin Maintenance Requirement formulas and margin calculator indicate how much margin you're using, Option Buying Power basically tells you how much margin you have left. Investopedia defines buying power as "the money an investor has available to buy securities and equals the total cash held in the brokerage account plus all available margin.

It doesn't make the margin maintenance math any less complex the issue isn't the math so much as the multiple formulas you have to consider , but it's a good shorthand method to determine how much margin your portfolio is using at any given time. That's important because your Buying Power is always going to be in flux since your margin maintenance requirements are going to vary depending on the price of your short options and that of the underlying stock.

So Options Buying Power can function as a speedometer of sorts where you determine a level below which you don't want it to drop. And if it does drop below that level, then maybe it's time to lighten up on some your positions. If you're new, or relatively new, to writing or selling puts, I would say no for a variety of reasons. Safer and More Conservative When it comes to leverage and naked short puts, I recommend you keep everything on a cash-secured basis when first starting out because that's the safest and most conservative route.

After all, when you sell cash-secured puts, the worst case scenario is that you end up owning shares at a price that represents a discount to the open market share price that the stock in question was trading at when you first sold the put. What's the worst that could happen? And if you only sell puts on high quality stocks at strike prices that represent attractive entry points, a worst case scenario really isn't that bad.

When you introduce margin, however, things can get more complicated. Or, if that doesn't appeal to you and you want to cut your losses and walk away from the trade, your losses will be magnified. That's because you used margin to set up a larger trade than what you would've had if you'd set it up on strictly on a cash-secured basis. Value of Experience Later on, after you've gained experience selling cash-secured puts, there can be a sensible use of margin in fact, we're going to be spending much of this article exploring different rationales for selling puts on margin.

But there really is no substitute for experience. Theory is a great foundation and first step. But it's experience - either direct experience or looking over someone else's shoulders - where the deepest and most profound learning happens. Pros and Cons of Selling Puts on Margin If you do have experience selling put option contracts on a cash-secured basis and you're wondering whether it makes sense to incorporate margin to some degree, it's important to understand the pros and cons involved.

The pros are going to vary depending on the put sellers motivation for using margin in the first place. Margin usage can be used: To boost your returns As a way to hedge a portfolio For convenience To facilitate naked put trade repairs And the cons? There's just one. Anytime you incorporate margin into your trades, you're adding risk in the form of potentially magnifying your losses if the situation goes to hell and you're not able to navigate, repair, or otherwise fix it.

Option Trading Options - Risk Dial vs. Risk Switch An analogy I like and use a lot when it comes to option trading and risk is the idea that risk is a dial, not a switch. There aren't simply two settings where you choose between "high risk" and "low risk. Ultimately, it's up to you how much margin you use if any , under what conditions, and to what purpose. And the choices you make will determine how far in one direction or the other your risk dial is set.

Let's explore this in greater depth by considering why a trader might want to sell puts on margin in the first place. Part 3 - Selling Puts on Margin to Boost Returns Let's face it - the number one reason why most traders sell puts on margin is to boost his or her returns. This is not an insignificant amount of returns we're talking about here, and when you run through the numbers, you can see why this can be a very tempting choice.

That's because - and you can check out the margin maintenance formulas above - selling out of the money puts doesn't really use that much of your option buying power. You can rack up quite a lot of short put positions on margin. But, of course, the question is how smart is it to do that? Because as we discussed above, option margin maintenance is a dynamic figure and if trades begin going the wrong way on you, your option buying power can quickly plummet as your margin usage increases automatically.

The more margin you use up front to boost your returns, the less margin you'll have for trade repairs. And the more margin you use, the larger the trades may be that require repairs. Trade repairs? We'll cover this in more detail on the section that specifically addresses using margin to help facilitate repairing in the money short puts, but in some circumstances, as part of our 4 Stage Short Put Trade Repair Formula , we sometimes add contracts to a trade in order to dramatically lower the strike price on an existing position.

Now, there's no rule that says we have to use margin in order to do this. In fact, because we also initiate small position sizes relative to our portfolio , and because this is a technique that we use sparingly, the need for margin to pull it off is rarely an issue. But it can be a nice ace in the hole if you ever truly do need it. I remember a health and driver's ed teacher from high school who told the story of how he was driving around town once under icy conditions and how his car was sliding at a very low speed toward a parked car.

No matter how much he pumped his brakes or turned the wheels, the tires wouldn't grip the road and meanwhile, he kept inching closer and closer to the parked car. He claimed his car was moving so slowly that a pedestrian in front of him could've literally put his hands on the hood and stopped him.

But alas! When you really need it, margin can be like having a helpful pedestrian with big hands and good boots to stop you from causing unnecessary damage. But if you're using margin aggressively to begin with, you're clearly speeding, and you never know when the conditions of the road are going to change. Unlike actual driving, there's often no warning on Wall Street when inclement weather will hit or when there's a surprise sharp curve in the road.

So the more margin you use when selling puts, the greater the likelihood that you're going to find yourself in a ditch at some point - or worse. In the same way that we've always sold puts on stocks that we deemed were in Limited Downside Situations i. When you think about it, there's natural self-hedging aspect to selling both puts and calls.

If you have a portfolio of both types of trades with spaced out entry dates and most likely not all expiring at the same time, your entire portfolio isn't vulnerable to a single big market move in one direction or the other. No Ratios or Formulas We're not shooting for any kind or arbitrary ratio between short puts vs.

We're basically just looking to enter the best new trade we can identify every week or so. In general, though, there's usually a pretty good mix between both types of trades at any given time. Whether the longer term trend is up, down, or flat, on a shorter term basis, the stock market does a lot of zigging and zagging. Here's where I'm going with this. I would argue that even if a portfolio used a little margin but had high quality trades of both kinds, it would be safer than a portfolio that didn't use margin but only employed one type of short options.

For example, which portfolio would be lower risk? Or Portfolio B that uses no margin but trades only short puts or only bear calls? OK - that's a trick question. The Sleep at Night Strategy, even when it only included short puts, always performed very well. And, of course, since we're able to repair just about any "bad" short put trade we find ourselves in, it rarely produced any actual losses. Market Loses. But the point here is that I think you can see how the inclusion of bear call spreads has taken something that was already in the GREAT category and made it even better.

That is, depending on how accurate we are in being able to correctly identify Limited Upside Situations. But based on our track record, I'd say we've done a very good job in that regard. Or in the modern, post-check world, swipe their debit card once too often when they don't have sufficient funds in their account?

I don't know about others, but I've certainly done it. I've even had services cut off once or twice when I failed to pay an overdue account. Note: these were rare occurrences, and it's not because I was broke, it was because I was neck deep in other things, projects, distractions, etc. And as someone who is self employed and trades full time, I don't have an employer who automatically deposits funds into my checking account.

Or rather, I'm the employer who does that, and sometimes I forget. That's where a checking account with good overdraft protection can come in handy. When it comes to selling puts, margin can be incorporated into your operations in a similar manner - not to accrue debt, but as a matter of convenience. How so exactly? Overdraft Protection Again, I liken this use to overdraft protection on your checking account. It's a convenience and designed so that you don't have to worry or always track your account super closely down to the penny.

So maybe your portfolio is fully engaged on a cash-secured basis and a new trade opportunity presents itself. If you're too legalistic about always being on a cash-secured basis, then you're either going to have to let the new opportunity pass, or you'll have to exit an existing trade earlier than you would've liked to free up capital.

In that way then, a little margin can get you into an attractive trade you otherwise would have to pass on. Bridging Trades and Opportunities Similarly, margin can also be used to bridge naked put trades and opportunities. Let's say you have a trade that's doing very well for you and it's set to expire in a few days, and you're not quite ready to lock in your profits to date. If you are starting your own business, feel free to visit our collection of start up calculators to get you on your feet.

Calculate the gross profit by subtracting the cost from the revenue. Express it as percentages: 0. This is how you calculate profit margin As you can see, margin is a simple percentage calculation , but, as opposed to markup, it's based on revenue, not on Cost of Goods Sold COGS. For example, costs may or may not include expenses other than COGS - usually, they don't.

In this calculator, we are using these terms interchangeably and forgive us if they're not in line with some definitions. To us, what's more important is what these terms mean to most people, and for this simple calculation the differences don't really matter. Luckily, it's likely that you already know what you need and how to treat this data. This tool will work as gross margin calculator or a profit margin calculator.

So the difference is completely irrelevant for the purpose of our calculations - it doesn't matter in this case if costs include marketing or transport. Most of the time people come here from Google after having searched for different keywords. In addition to those mentioned before, they searched for profit calculator, profit margin formula, how to calculate profit, gross profit calculator or just gp calculator and even sales margin formula.

Margin vs markup The difference between gross margin and markup is small but important. The former is the ratio of profit to the sale price and the latter is the ratio of profit to the purchase price Cost of Goods Sold. In layman's terms, profit is also known as either markup or margin when we're dealing with raw numbers, not percentages. It's interesting how some people prefer to calculate the markup, while others think in terms of gross margin. It seems to us that markup is more intuitive, but judging by the number of people who search for markup calculator and margin calculator, the latter is a few times more popular.

FAQ What's the difference between gross and net profit margin? Gross profit margin is your profit divided by revenue the raw amount of money made. Net profit margin is profit minus the price of all other expenses rent, wages, taxes etc divided by revenue.

Think of it as the money that ends up in your pocket. While gross profit margin is a useful measure, investors are more likely to look at your net profit margin, as it shows whether operating costs are being covered. Can profit margin be too high? While a common sense approach to economics would be to maximise revenue, it should not be spent idly - reinvest most of this money to promote growth.

Pocket as little as possible, or your business will suffer in the long term! There are also certain practices that, despite short term profit, will cost you more money in the long run, e. What is margin in sales? Your sales margin is the product of the selling price an item or service, minus the expenses it took to get the product to be sold, expressed as a percentage.

These expenses include: discounts, material and manufacturing costs, employee salaries, rent, etc. While this is very similar to net profit, sales margin is in per unit terms. Subtract 0.

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