Position Size Calculator

Calculate the correct lot size for your trade based on your account balance, risk tolerance, and stop loss distance.

Trade Parameters

Results

Dollar Risk
$100.00
1% of $10,000
Pip Value (EUR/USD, per standard lot)
$10.00
Position Size — Standard Lots
0.20
1 standard lot = 100,000 units
Mini Lots
2.00
10,000 units each
Micro Lots
20.00
1,000 units each

How It Works

The position size calculator helps you determine how many lots to trade so that you risk a specific dollar amount on each trade. Here is the formula broken down step by step:

  1. Calculate your dollar risk. Multiply your account balance by the percentage you are willing to risk. For example, 1% of a $10,000 account means you are risking $100 on the trade.
  2. Determine the pip value. Each currency pair has a different pip value depending on the quote currency and exchange rate. For pairs where USD is the quote currency (like EUR/USD), one pip on a standard lot is worth exactly $10. For other pairs, the pip value varies with the current exchange rate.
  3. Divide dollar risk by total pip cost. Multiply the pip value by your stop loss distance in pips. Then divide your dollar risk by that number. The result is your position size in standard lots.

Formula

Position Size (lots) = Dollar Risk / (Stop Loss in Pips × Pip Value per Standard Lot)

Example: With a $10,000 account, risking 1% ($100), a 50-pip stop loss on EUR/USD (pip value = $10), the position size is $100 / (50 × $10) = 0.20 standard lots, which equals 2.00 mini lots or 20.00 micro lots.

Note: The pip values used in this calculator are approximate and based on recent exchange rates. For live trading, always verify the pip value with your broker, as rates fluctuate constantly.