Position sizing is the single most important risk-management skill in trading. Instead of guessing how many lots to trade, you decide in advance the small percentage of your account you are willing to risk, set your stop, and let the maths return the exact lot size. Enter your balance, risk and stop below for an instant answer.
The calculator fixes your loss at the stop to a chosen percentage of the account, then divides that cash risk by what the stop costs per lot:
Risk amount = balance × (risk % ÷ 100) Risk per lot = stop (pips) × pip value per lot Position size = Risk amount ÷ Risk per lot (in lots) Example — $10,000 account, 1% risk, 20-pip stop, EUR/USD: Risk amount = 10,000 × 0.01 = $100 Risk per lot = 20 × $10 = $200 Position size= 100 ÷ 200 = 0.50 lots
Confirm the pip figure with the pip value calculator, check the margin the size requires, and once filled, track the trade in your trade journal. Avoid sizing into red-flag releases on the economic calendar.
Most disciplined traders risk between 0.5% and 2% of account equity per position. Lower is safer; the right number depends on your win rate, edge and tolerance for drawdown.
Use current account equity (balance plus open P&L) for the most honest figure, especially when you already have positions open.
Yes — convert your price-based stop to a pip distance first. For a EUR/USD entry at 1.0840 with a stop at 1.0820, that is 20 pips.