Position Size Calculator
A position size calculator tells you how many lots to trade so that, if your stop loss is hit, you lose exactly the amount you chose to risk. Enter your account balance, risk percentage and stop-loss distance in pips.
How position size is calculated
The risk amount is your account balance multiplied by your risk percentage. Pip value per unit is the pip size (0.0001, or 0.01 for JPY pairs) converted into your account currency. Divide units by 100,000 to get standard lots.
Worked example
Balance $10,000, risk 1% ($100), stop loss 20 pips on EUR/USD (USD account):
$100 ÷ (20 × $0.0001) = 50,000 units = 0.50 lots.
Frequently asked questions
How do I calculate position size in forex?
Decide how much money you are willing to lose on the trade (for example 1% of your account), measure the distance to your stop loss in pips, then divide the risk amount by the stop distance multiplied by the value of one pip per unit.
How much should I risk per trade?
Many traders risk between 0.5% and 2% of their account per trade. Keeping risk small means a losing streak does not destroy the account.
What if my broker only allows 0.01 lot steps?
Round the calculated position size down to the nearest lot step your broker allows, so your real risk stays at or below your target.
Learn more
- What is a pip?
How pip value is calculated.
Other tools
- Pip Value Calculator
What one pip is worth for any pair and position size.
- Margin Calculator
How much margin a position needs at your leverage.
- Forex Profit Calculator
Profit or loss in pips and money for any entry and exit price.
- Forex Market Hours
Live clock of the Sydney, Tokyo, London and New York sessions in your time zone.
Results are estimates for educational purposes and exclude spreads, commissions and swaps unless stated. Always confirm figures with your broker before trading.