Our Position Size Calculator helps you determine the exact lot size to trade based on your account size, risk tolerance, and stop loss. This guide will walk you through using it step-by-step.

What You'll Need Before Starting

Your current account balance
How much you want to risk per trade (typically 1-2%)
Your stop loss distance in pips
The currency pair you're trading

Step-by-Step Instructions

1Enter Your Account Balance

In the "Account Size" field, enter your total trading capital.

Example: If you have $10,000 in your trading account, enter 10000

💡 Tip: Use your actual current balance, not your starting balance. The calculator needs to know your real account size for accurate position sizing.

2Set Your Risk Percentage

In the "Risk %" field, enter how much of your account you're willing to risk on this trade.

Recommended: Enter 1 for 1% risk (conservative) or 2 for 2% risk (moderate)

⚠️ Warning: Professional traders rarely risk more than 2% per trade. Never enter values above 5% unless you have significant experience and a proven strategy.

3Enter Your Stop Loss in Pips

In the "Stop Loss (pips)" field, enter the distance from your entry price to your stop loss.

Example: If you're entering EUR/USD at 1.0850 with a stop at 1.0820, that's 30 pips. Enter 30

How to count pips:

Most pairs (EUR/USD, GBP/USD): 4th decimal place (1.0850 to 1.0851 = 1 pip)
JPY pairs (USD/JPY): 2nd decimal place (148.50 to 148.51 = 1 pip)
Gold/Silver (XAU/XAG): 1st decimal place (2050.5 to 2051.5 = 10 pips)

4Select Your Currency Pair

Use the "Trading Pair" dropdown to select what you're trading.

We support:

Forex Major Pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, USD/CAD, NZD/USD
Forex Cross Pairs: EUR/GBP, EUR/JPY, GBP/JPY, AUD/JPY, etc.
Commodities: Gold (XAU/USD), Silver (XAG/USD)
Indices: US30, NAS100, SPX500, GER40, UK100

💡 Tip: The calculator automatically adjusts pip values based on the pair you select, so make sure you choose the correct one!

5Click "Calculate Position Size"

Press the button and the calculator will show you:

Position Size in Lots: How many lots to trade (e.g., 0.25 lots)
Risk Amount: Exact dollar amount you're risking
Position Value: Total value of the position

Understanding Your Results

Position Size (Lots)

This is the number you enter into your trading platform when placing the order.

Result: 0.20 lots

What this means:
• In MT4/MT5: Enter "0.20" in the volume field
• This equals 2 mini lots or 20 micro lots
• Contract size: 20,000 units of the base currency

Risk Amount

This confirms exactly how much you'll lose if your stop loss is hit.

Result: Risk Amount: $100

Verification: This should match your account balance × risk %
($10,000 × 1% = $100 ✓)

Position Value

The total market value of your position (for informational purposes).

Real Trading Example

Scenario: Day trading EUR/USD

Your Setup:
• Account: $5,000
• Risk: 1.5% ($75)
• Entry: 1.0850
• Stop Loss: 1.0820 (30 pips below)
• Currency Pair: EUR/USD

Calculator Inputs:
1. Account Size: 5000
2. Risk %: 1.5
3. Stop Loss (pips): 30
4. Trading Pair: EUR/USD

Calculator Output:
Position Size: 0.25 lots
Risk Amount: $75

In Your Platform:
Open EUR/USD buy order with 0.25 lots, stop at 1.0820

Common Mistakes to Avoid

❌ Mistake #1: Using Margin Instead of Account Balance

Wrong: Entering your available margin ($50,000 with 100:1 leverage)
Right: Enter your actual account balance ($5,000)

❌ Mistake #2: Confusing Pips with Price

Wrong: Entering "1.0820" in stop loss field
Right: Calculate pip difference first (30 pips), then enter 30

❌ Mistake #3: Forgetting to Account for Spread

If EUR/USD has a 2-pip spread and you want 30 pips of actual stop distance, enter 32 to account for the spread cost.

❌ Mistake #4: Not Updating Account Balance

If your account grew from $5,000 to $6,000, update the calculator! Using old balance means undersizing positions and missing potential profit.

Advanced Features

Multi-Currency Support

Change your account currency using the dropdown:

USD ($)
EUR (€)
GBP (£)
AUD (A$)
CAD (C$)
CHF
JPY (¥)

The calculator automatically converts pip values to your account currency using real-time exchange rates.

Quick Recalculation

Press Enter in any field to instantly recalculate without clicking the button.

Frequently Asked Questions

Q: What if my calculated position size is too small?

A: If the calculator shows 0.01 lots (minimum for most brokers) but your stop loss is very wide:

Option 1: Increase your account size
Option 2: Use a tighter stop loss (if market structure allows)
Option 3: Skip the trade (never increase risk % to force a position)

Q: Can I use this for crypto or stocks?

A: Currently optimized for forex, commodities (gold/silver), and indices. For crypto/stocks, you can still use it but manually verify pip values with your broker.

Q: Why is my position size different than I expected?

A: Check these:

Correct currency pair selected?
Using actual account balance (not margin)?
Stop loss in pips (not price levels)?
Account currency matches your trading account?

Q: Should I always use the exact position size shown?

A: Round down to the nearest standard increment your broker allows (usually 0.01 lots). Never round up, as that increases risk beyond your target.

Pro Tips for Better Results

💡 Tip #1: Save your common settings. If you always trade with 1% risk on a $10K account, bookmark the calculator with those values filled in.

💡 Tip #2: Verify the calculation manually at first. For EUR/USD with 1% risk on $10K and 50-pip stop:
$100 ÷ (50 pips × $10 per pip) = 0.20 lots ✓

💡 Tip #3: Use the calculator BEFORE entering trades, not after. Position sizing should determine your lot size, not your gut feeling.

💡 Tip #4: If trading multiple pairs simultaneously, calculate each separately but ensure total risk across all positions doesn't exceed 3-5% of your account.

What to Do After Calculating

Write down the position size (don't rely on memory)
Open your trading platform
Enter the exact lot size shown by calculator
Set your stop loss at the predetermined level
Double-check everything before clicking "Buy" or "Sell"
Execute the trade with confidence

Ready to Calculate?

Now that you know how to use the Position Size Calculator, you can confidently size every trade according to your risk management plan.

Open Position Size Calculator →

Related Guides:
• Complete Position Sizing Guide
• The 1% Risk Rule Explained
• All Trading Calculators