Position Size Calculator
Calculate the correct lot size for a trade based on your account balance, risk tolerance, and stop loss distance — the same position-sizing math behind consistent risk management.
≈ $10 per pip, per 1.0 standard lot — approximate. Always confirm the exact pip value from your broker's contract specification before sizing a live trade.
Standard lot position size
Risking $100 (1% of $10,000) if the stop loss is hit.
This calculator is an educational tool. Pip values shown are typical approximations and vary by broker and by live exchange rate for cross pairs — always verify against your broker's contract specifications before sizing a real trade. This is not financial advice.
Frequently asked questions
How is position size calculated?
Position size (in lots) = (Account Balance × Risk %) ÷ (Stop Loss in Pips × Pip Value per Lot). This keeps the dollar amount at risk consistent regardless of how far away the stop loss is placed.
What risk percentage should I use per trade?
Most systematic strategies use 0.5% to 2% of account equity per trade. Higher percentages increase both potential returns and the severity of losing streaks — see our guide on trading bot risk management for the full breakdown.
Why does pip value vary by instrument?
Pip value depends on the currency pair's quote currency and the current exchange rate for cross pairs. USD-quoted majors are typically close to $10 per pip per standard lot, while pairs like USD/JPY or metals like XAU/USD differ. Always confirm the exact value with your broker.
Want the full picture on sizing, stops, and drawdown?
Read the Risk Management Guide