How this calculator works — Position Size Calculator
Position sizing answers the only question that matters before you click buy or sell: “how big should this trade be so that if my stop is hit, I lose exactly what I planned — and no more?” It converts your risk budget into lots using four numbers: your balance, the percentage you're willing to lose, the distance to your stop, and what one pip is worth for the symbol you're trading.
Example: ($1,000 × 1%) ÷ (25 pips × $10) = $10 ÷ $250 = 0.04 lots
Worked example — EURUSD, small account
You have a $1,000 account and risk 1% ($10). Your setup: buy EURUSD at 1.0850 with a stop at 1.0825 — that's 25 pips. On a standard lot, 1 pip of EURUSD is worth $10, so 25 pips would cost $250 per lot. $10 ÷ $250 = 0.04 lots. If the stop is hit you lose $10; if your target at 60 pips is hit you make $24 — a 1 : 2.4 risk/reward without ever risking more than your plan.
Pip value cheat sheet (USD accounts, 1.00 lot)
| Symbol | 1 pip = | Pip value / lot | Micro lot (0.01) |
|---|---|---|---|
| EURUSD, GBPUSD, AUDUSD, NZDUSD | 0.0001 | $10.00 | $0.10 |
| USDJPY | 0.01 | ≈ $6.70 | ≈ $0.07 |
| USDCAD | 0.0001 | ≈ $7.30 | ≈ $0.07 |
| XAUUSD (gold) | $0.10 move | $10.00 | $0.10 |
The 1% rule — and when to use less
Risking 1% means 10 losses in a row cost you ~10% of the account — painful but survivable, and 10-loss streaks happen to good traders. At 5% risk, the same streak cuts your account nearly in half while the win-rate needed to recover balloons. Under $500? Consider 0.5% risk, or a cent account where 0.01 lots behaves like 0.0001 standard lots.
CFDs and Forex are complex instruments with a high risk of losing money rapidly due to leverage. Ensure you understand how these products work before trading. See our risk disclaimer.
Frequently asked questions — Position Size Calculator
How do I calculate position size in forex?
Use the formula above: balance × risk % ÷ (stop in pips × pip value per lot). This calculator automates it for majors, JPY pairs and gold, including micro-lot rounding.
What if my result is below the broker's 0.01 minimum?
Then a standard account can't express your risk plan — either widen the stop, reduce the symbol's volatility exposure (smaller timeframes), or use a cent account. Never round up to the minimum and hope; that silently doubles your risk.
Should I round lots up or down?
Always down (this calculator rounds down to 0.01). Rounding up means risking more than your planned percentage.
Is position size different for gold or indices?
The formula is identical — only the pip value changes. For gold we use the common convention of $10 per $0.10 move per standard lot (100 oz). Always confirm your broker's contract specifications.
Related tools & guides — Position Size Calculator
Related — Position Size Calculator
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