Position Size Calculator (USD Account)
Result
For XAUUSD, 1 pip equals 0.01. Pip value is automatically calculated based on the selected pair and current price.
Position Size Calculator for Forex Traders 🧮
Managing your risk is the most important part of successful trading. Use our Forex Position Size Calculator to quickly determine the optimal lot size for your trades, based on your account balance, chosen risk percentage, and stop-loss distance. This helps you trade smarter and avoid unnecessary losses.
How to Use the Position Size Calculator
- Enter Account Balance – Fill in the total amount in your trading account.
- Set Risk Percentage – Choose how much of your account you want to risk on this trade (e.g. 1–2%).
- Add Stop-Loss Distance – Enter the distance between your entry price and stop-loss in pips.
- Click Calculate – The tool will show the correct position size (in lots) for your trade.
💡 Tip: Professional traders typically risk between 0.5% – 2% of their account on each trade.
Why Position Sizing Matters
Position sizing is a core element of money management. Even with a profitable strategy, poor position sizing can lead to large drawdowns or blown accounts. By calculating your lot size correctly, you ensure consistent risk across all trades, making your trading approach more systematic and less emotional.
Example:
If you have a $1,000 account and risk 1% ($10) with a 20 pip stop loss, the calculator will suggest a position size that limits your loss to $10 — no more, no less.
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Frequently Asked Questions (FAQ)
What is position sizing?
Position sizing is the process of determining how many lots or units to trade based on your account size and risk tolerance. It ensures consistent risk across trades.
How much should I risk per trade?
Most professional traders risk between 0.5% and 2% per trade, depending on their strategy and risk appetite.
Does this calculator work for all forex pairs?
Yes. The calculator works for all currency pairs and account types.