Calculate the Optimal Lot Size for Every Trade
Our Position Size Calculator helps you determine the ideal trade size based on your risk tolerance, account balance, and stop-loss level. Whether you’re trading forex, managing risk is the key to long-term success, and it starts with correct position sizing.
How to Use the Position Size Calculator
To calculate your position size accurately, follow these steps:
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Account Currency – Select your trading account currency (e.g. USD, EUR)
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Account Balance – Enter your total account balance
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Risk Percentage – Define how much of your account you’re willing to risk (e.g. 1%, 2%)
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Stop-Loss in Pips/Points – Input the size of your stop-loss in pips or points
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Symbol– Choose the asset you want to trade (e.g. EUR/USD, BTC/USD)
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Click Calculate – The tool will show your ideal trade size in lots or units
Example
Let’s say:
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Account Balance = $10,000
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Risk = 2%
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Stop-loss = 50 pips
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Pair = EUR/USD
Here’s how the calculator processes this:
| Field | Value |
|---|---|
| Account Balance | $10,000 |
| Risk Percentage | 2% |
| Stop-Loss (in Pips) | 50 |
| Symbol | EUR/USD |
| Pip Value (per lot) | $10 |
Calculation:
Risk Amount = 2% of $10,000 = $200
Position Size = $200 ÷ (50 pips × $10) = 0.40 lots
✅ Recommended Position Size: 0.40 lots
Why Use a Position Size Calculator?
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Prevent over-leveraging and emotional trading
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Keep your risk per trade consistent
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Save time on manual calculations
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Trade smarter by adapting to market volatility
Important Notes:
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The pip/point value varies depending on the asset and lot size
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This tool calculates based on gross risk and does not include broker fees or slippage
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Always combine proper position sizing with a solid risk management plan
FAQ
What is position size in trading?
Position size refers to the amount of a financial instrument you trade, typically expressed in lots or units. It determines how much you’re risking in a trade.
Why is position sizing important?
Proper position sizing protects your capital and ensures consistent risk exposure across different trades—key to surviving long-term in the markets.
What if I don’t use pips?
You can calculate position size using points, ticks, or price difference depending on the asset. The principle is the same: divide the risk amount by the stop-loss value × unit value.
