Position Size Calculator
Determine the right lot size for every trade based on your account balance, risk tolerance, and stop loss distance.
Calculate Position Size
Recommended Position Size
Position Size
—
Risk Amount
—
Pip Value
—
Calculation Breakdown
⚠️ Risk Management Tip: Most professional traders risk no more than 1–2% of their account per trade. This means a string of losing trades won't wipe out your account, giving you time to recover.
How Position Sizing Works
Position sizing is the process of determining how many lots (or units) to trade based on your risk parameters. It's one of the most important aspects of trading — arguably more important than your entry and exit strategy.
The Formula
Position Size (lots) = Risk Amount / (Stop Loss in Pips × Pip Value)
Where:
- Risk Amount = Account Balance × Risk Percentage
- Stop Loss = Distance from entry to stop loss in pips
- Pip Value = Dollar value of one pip for one standard lot
Example
With a $10,000 account, 1% risk, and a 50-pip stop loss on EUR/USD:
Risk Amount = $10,000 × 1% = $100
Position Size = $100 / (50 pips × $10/pip) = 0.20 lots
Frequently Asked Questions
What percentage should I risk per trade?
The widely accepted range is 1–2% per trade. Beginners should lean toward 0.5–1%. Even experienced traders rarely exceed 3% on any single trade. The key is consistency — your position size should protect your capital through inevitable losing streaks.
How does stop loss distance affect position size?
Wider stop losses mean smaller position sizes (and vice versa). A 100-pip stop loss on the same setup requires half the lot size of a 50-pip stop to maintain the same dollar risk. This is why the calculator is essential — it keeps your risk constant regardless of stop distance.
Should I round the lot size up or down?
Always round down. Rounding up increases your risk beyond the planned amount. If the calculator says 0.27 lots and your broker allows mini lots (0.1), use 0.2 lots rather than 0.3.
Does this work for all instruments?
The principle works for any instrument, but pip values differ. For gold, indices, or crypto, the pip size and contract size are different from forex pairs. This calculator covers the major and cross forex pairs.
Explore more trading tools