Free Cash Flow Formula: An Overview of Forex Trading

The foreign exchange (Forex) market is a rapidly evolving, highly liquid market that offers many opportunities for investors to improve their financial standing. As a cornerstone of any successful investment strategy, it’s important to understand the free cash flow formula in order to maximize returns. In this article, we will explore the fundamentals of the free cash flow formula so you can use it to your advantage in Forex trading. The free cash flow formula is:

Free Cash Flow = Operating Cash Flow – Capital Expenditure

This formula calculates the amount of cash that a company has available to reinvest into the business after paying for all operating expenses and capital expenditures. Operating cash flow includes all cash generated from the day-to-day operations of the business, while capital expenditure includes any investments in equipment, property, or long-term assets.