How position size is calculated
The right size comes from one idea: you decide how much money you are willing to lose, and the stop loss decides how many units you can carry so that, if it is hit, you lose exactly that.
Money at risk is your balance times the risk percentage. With $10,000 and 1% you risk $100. If your stop is 20 pips away on EURUSD, each pip of a standard lot is worth about $10, so 100 ÷ (20 × 10) = 0.5 lots.
If the currency the instrument is quoted in is not your account currency, it has to be converted: that is why the calculator uses the current exchange rate for the pip value.
Frequently asked questions
What percentage of my account should I risk per trade?
The most common guideline is 0.5% to 2% per trade. On funded (prop firm) accounts traders usually stay at or below 1% so a bad streak does not get near the daily drawdown. This is a general guideline, not personal advice.
How do I calculate lot size in Forex?
Divide the money at risk by the stop distance in price and by the value of that distance per lot. This calculator does it for you and rounds down to the minimum lot step so you never risk more than you entered.
Does it work for gold, indices and crypto?
Yes. It includes XAUUSD, NAS100, US30, GER40, micro and standard futures (MES, MNQ, ES, NQ…) and the main cryptocurrencies. For CFDs the contract size depends on your broker, so verify it in the symbol specification.
Do you store what I type?
No. The calculation runs in your browser and we do not send your data anywhere. Only the exchange rate is requested.
Is this investment advice?
No. It is a calculation tool with approximate values. Always double-check the result on your platform before trading. Leveraged trading carries a high risk of loss.
Approximate values for information only. Not financial advice. Leveraged trading carries a high risk of loss.
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