Trading Tools
Position Size Calculator
Calculate the correct position size for any trade based on your account balance, risk tolerance, and stop loss distance. Proper position sizing is the cornerstone of risk management.
Why Position Sizing Matters
Position sizing determines how many lots (or units) you trade on each position. It directly controls how much you stand to lose if the trade hits your stop loss. Professional traders typically risk between 1-2% of their account per trade. This ensures that no single losing trade can significantly damage their account, allowing them to survive inevitable losing streaks and stay in the game long-term.
Parameters
Enter your trade details below
Your total trading account balance
Percentage of account to risk on this trade
Distance from entry to stop loss in pips
$10.00 per pip per standard lot
Results
Your calculated position size
Position Size
0.20standard lots
Risk Amount
$100.00
1% of $10,000.00
Pip Value
$10.00
per pip / standard lot
Mini Lots
2.00
10,000 units each
Micro Lots
20.00
1,000 units each
Formula
Learn how position size is calculated
Calculate Risk Amount
Risk Amount = Account Balance x (Risk % / 100)
$10,000.00 x (1% / 100) = $100.00
Get Pip Value
Pip Value = varies by currency pair
EUR/USD: $10.00 per pip per standard lot
Calculate Position Size
Position Size = Risk Amount / (Stop Loss x Pip Value)
$100.00 / (50 pips x $10.00) = 0.20 lots
Standard Pip Values Reference
Approximate pip values per standard lot (100,000 units) for a USD-denominated account
| Pair | Pip Value / Std Lot | Pip Value / Mini Lot | Pip Value / Micro Lot | Note |
|---|---|---|---|---|
| EUR/USD | $10.00 | $1.00 | $0.10 | USD pair |
| GBP/USD | $10.00 | $1.00 | $0.10 | GBP cross |
| AUD/USD | $10.00 | $1.00 | $0.10 | USD pair |
| NZD/USD | $10.00 | $1.00 | $0.10 | USD pair |
| USD/CHF | $10.00 | $1.00 | $0.10 | USD pair |
| USD/CAD | $10.00 | $1.00 | $0.10 | USD pair |
| USD/JPY | $6.50 | $0.65 | $0.07 | JPY pair |
| EUR/JPY | $6.50 | $0.65 | $0.07 | JPY pair |
| GBP/JPY | $6.50 | $0.65 | $0.07 | JPY pair |
| EUR/GBP | $12.70 | $1.27 | $0.13 | GBP cross |
For educational purposes only. Not financial advice. Pip values are approximate and fluctuate with exchange rates. Always verify with your broker before placing trades. Trading forex involves significant risk of loss.