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What this position size calculator does
This position size calculator tells you the right lot size for a trade, based on how much you're willing to risk and where your stop-loss sits. Enter your account balance, risk per trade, instrument and stop-loss distance, and you'll see:
- the lot size to use, rounded down to 0.01
- the amount at risk in your account currency
- the value of each pip at that size
- the margin required at your leverage, and how much of your balance it uses
- a warning if the trade is too big for your account, or your risk is too small for the minimum trade size
It works for major and cross currency pairs, gold and silver, and for accounts in USD, EUR, GBP, CAD, AUD, NZD, CHF and JPY.
How to use it
- Account currency and balance: the currency and amount in your trading account.
- Risk per trade: as a percentage of your balance (many traders use 1–2%) or as a fixed amount.
- Instrument: the pair or metal you plan to trade.
- Stop-loss distance: how many pips from your entry to your stop-loss. For gold, choose your broker's pip size first.
- Current price: filled in for currency pairs from daily reference rates. For the most accurate result, enter the live price from your platform.
- Units per lot and leverage: standard defaults are filled in. Change them if your broker uses different contract sizes.
The position size formula
Lot size = amount at risk ÷ (stop-loss in pips × pip value per 1 lot)
Example: a $5,000 account risking 1% ($50), with a 25-pip stop on EUR/USD (where 1 lot = $10 per pip):
$50 ÷ (25 × $10) = 0.20 lots
At 0.20 lots, each pip is worth $2, so a 25-pip loss costs exactly $50.
For a full walkthrough with USD/JPY and gold examples, read our guide on how to calculate lot size in forex.
Why position sizing matters
Position sizing keeps every loss within a limit you've chosen in advance. That means a losing streak, which every trader faces, won't wipe out your account. With 1% risk per trade, ten losses in a row would cost about 9.6% of your account. With 5% risk, the same streak would cost about 40%.
The calculator also checks the margin your trade needs. If the margin is too large compared with your balance, even a correctly sized trade can be closed early by a margin call. See our forex margin call example.
Frequently asked questions
How do I calculate position size in forex?
Divide the amount you're willing to risk by your stop-loss in pips multiplied by the pip value of 1 lot. This calculator does it for you.
Why does the calculator round down?
Rounding down to 0.01 lots keeps your actual risk at or below your chosen limit.
What if the result is 0.00 lots?
Your risk is too small for even a micro lot with that stop-loss. Use a tighter stop, risk a little more, or check whether your broker offers smaller trade sizes.
Does leverage change my lot size?
No. Leverage only changes the margin you need. Your lot size comes from your risk and stop-loss.
Is my data saved?
No. The calculator runs in your browser, and nothing you enter is stored.
Related tools and guides
- Pip value calculator: see what any price move is worth
- What is a pip in forex?
- Forex lot sizes explained
- How much is 1 pip in gold?
This calculator is for education only and is not financial or trading advice. Your broker's prices, contract sizes, pip definitions and margin rules may differ. Leveraged trading carries a high level of risk, and you can lose more than your deposit.