Position Size Calculator

How to use it

1. 1Enter your account balance.
2. 2Enter the percentage of the account you are willing to risk on the trade.
3. 3Enter the stop-loss distance in pips.
4. 4Enter the pip value per standard lot for the pair.

Formula

Lots = (Balance × Risk %) ÷ (Stop in pips × Pip value per standard lot)

Worked example

A $10,000 account risking 1% with a 25-pip stop and $10 pip value gives (10,000 × 0.01) ÷ (25 × 10) = 0.4 standard lots.

Why it matters

Position sizing works backwards from the loss you are prepared to accept, rather than forwards from a fixed lot size.

Because size scales with equity, the same percentage rule reduces exposure automatically during a drawdown.