Calculate your optimal lot size instantly with our free position sizing tool. Perfect for beginners and professional traders. No registration required.
Position sizing is the foundation of successful trading. As a beginner, protecting your capital is more important than making profits. Here's how to start:
Pro Tip: Start with $1,000 minimum and risk only $10 per trade (1%). This gives you 100 trades to learn without blowing your account.
Account: $10,000
Risk: 2% = $200
Stop: 50 pips
Pip Value: $10
Result: 0.40 lots
Follow these 5 simple steps to calculate your position size:
Check your current trading account balance (e.g., $10,000)
Choose how much to risk per trade (recommended: 1-2%)
Measure pips from entry to stop loss level (e.g., 50 pips)
Standard lot = $10/pip, Mini = $1/pip, Micro = $0.10/pip
Position Size = (Balance × Risk%) ÷ (Stop Loss × Pip Value)
Important: Always round down your position size to stay within risk limits. It's better to risk slightly less than your target than to exceed it.
Professional traders follow the 2% rule: never risk more than 2% of your account on a single trade. This ensures you can survive 50 consecutive losses - giving you time to refine your strategy.
Position size is the number of lots or units you trade. It determines your profit/loss per pip and should be calculated based on your account balance, risk percentage (typically 1-2%), and stop loss distance.
Position Size = (Account Balance × Risk%) ÷ (Stop Loss in Pips × Pip Value). For example: $10,000 × 2% ÷ (50 pips × $10) = 0.40 lots.
Beginners should risk only 0.5-1% per trade. For a $1,000 account, this means $5-10 risk per trade. Start with micro lots (0.01) to gain experience safely.
Leverage doesn't directly affect position size calculation, but it determines the margin required. Higher leverage allows larger positions but doesn't change the risk calculation method.
The 2% rule states you should never risk more than 2% of your account on a single trade. This ensures you can survive 50 consecutive losses, protecting your capital long-term.
Yes, the position sizing principle works for any market. Just adjust the pip value for crypto (satoshis) or stocks (cents/pennies) accordingly.
Brokers may have minimum/maximum lot sizes and step increments (e.g., 0.01 lots). The calculator shows the ideal size; you may need to round to your broker's requirements.
Recalculate for every new trade to account for current balance changes. After wins/losses, your account balance changes, affecting optimal position size.
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Read the Complete GuideJoin Milton Markets and trade with confidence using professional position sizing.