Position Size Calculator
Calculate the optimal position size based on your account balance and risk tolerance. Never risk more than you intend.
Quick Risk Presets:
Your total trading capital
Recommended: 1-2% per trade
Fetch current market price
Price at which you enter the trade
Price at which you exit to limit loss
Affects pip/point calculation
Position Size
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lots/units
Risk Amount
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Pip Distance
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Potential Loss
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How to Use This Calculator
Step-by-Step Guide
- Enter Account Size: Input your total trading capital in dollars.
- Set Risk Percentage: Enter the percentage of your account you're willing to risk (1-2% recommended).
- Enter Entry Price: The price at which you plan to enter the trade.
- Enter Stop-Loss: The price where you'll exit if the trade goes against you.
- Select Symbol Type: Choose forex, crypto, or stocks for proper pip calculation.
Example Calculation
A trader with a $10,000 account wants to buy EURUSD at 1.0840 with a stop-loss at 1.0820, risking 1%:
- Risk Amount: $100 (1% of $10,000)
- Pip Distance: 20 pips
- Pip Value (1 lot): $10 per pip
- Position Size: 0.50 lots (50,000 units)
If the stop-loss is hit, the loss would be exactly $100 (20 pips × $10 × 0.50 lots).
Why Position Sizing Matters
- Prevents catastrophic losses from single trades
- Ensures consistent risk across all trades
- Protects your account during losing streaks
- Allows your edge to play out over many trades
Frequently Asked Questions
Position sizing is the process of determining how many units, lots, or shares to trade based on your account size and the amount you're willing to risk. It's a critical risk management tool that helps protect your capital.
Risking 1-2% per trade allows you to survive a string of losses without significant damage to your account. For example, with 1% risk, you can lose 20 trades in a row and still have over 80% of your capital remaining. At 10% risk per trade, 10 consecutive losses would wipe out 65% of your account.
A pip (percentage in point) is typically the smallest price move in forex. For most currency pairs, it's the fourth decimal place (0.0001). For JPY pairs, it's the second decimal place (0.01). One pip in a standard lot (100,000 units) of EURUSD is worth $10.
Professional traders generally recommend keeping your risk consistent regardless of confidence level. Varying position size based on "feeling" often leads to larger losses on overconfident trades and smaller gains on good setups. Consistency is key to long-term success.