Position Size Calculator
Calculate the optimal position size for your forex trades based on your account balance, risk tolerance, and stop loss distance.
Proper position sizing is the cornerstone of risk management. Use this calculator to determine exactly how many lots you should trade to stay within your risk parameters.
How to Use the Position Size Calculator
Position sizing is one of the most important aspects of risk management in forex trading. This calculator helps you determine the appropriate lot size for your trades based on:
- Account Balance: Your total trading account size
- Risk Percentage: How much of your account you're willing to risk (typically 1-2%)
- Stop Loss Distance: How many pips away your stop loss is from entry
- Pip Value: The value of 1 pip for the currency pair you're trading
Why Position Sizing Matters
Proper position sizing protects your trading capital and ensures long-term survival in the markets. Even profitable strategies can lead to account blow-ups if position sizing is incorrect.
The 1% Rule
Most professional traders risk no more than 1% of their account on any single trade. This means if you have a $10,000 account, you should risk no more than $100 per trade.