How to Use the Position Size Calculator (Step-by-Step)
- Account Currency: choose USD, EUR, AUD, etc.
- Currency Pair: we auto-fill Current Price with a live quote; you can overwrite it.
- Account Balance: enter your equity for risk-% mode to work correctly.
- Risk: start with Risk Ratio, % (e.g., 1). Click Swap with Money to risk a fixed amount in your account currency.
- Stop-Loss (pips): distance from entry to stop.
- Click Calculate to get Position Size (lots), Units, Risk Amount, and Pip Value (per lot).
Why Position Sizing Matters
Position sizing controls your downside. Rather than guessing a lot size, you define the maximum loss and the calculator backs out the lots & units that match your stop-loss in pips. Our tool also converts cross-currency pip values into your account currency automatically, using live prices.
Worked Example
Account = $10,000, Risk = 1% ($100), Pair = EURUSD, Stop-Loss = 25 pips.
Pip value for 1 standard lot ≈ $10. Position size = $100 ÷ (25 × $10) = 0.40 lots (≈40,000 units).
Quick formula (conceptual)
Lots = (Risk in account currency) ÷ (Pip value per lot in account currency × Stop-loss pips)
Best-Practice Risk Tips
- Keep per-trade risk small (many traders use 0.5-2% of balance).
- Leverage doesn’t change pip value-it changes required margin and how quickly P/L swings.
- Round to your broker’s minimum/step lot size (e.g., 0.01).
- Re-check size if you move the stop or change the entry price.
Position Size Calculator – FAQ
What does the position size calculator do?
It helps you work out exactly how many lots or units to trade so that, if your stop-loss is hit, you only lose the amount you are comfortable risking. You enter your account balance, how much you want to risk, your stop-loss in pips, and the pair you are trading. The calculator then shows you the correct trade size, removing the guesswork.
Does the calculator use live prices?
Yes – the Current Price field is filled automatically using live market rates. That means your pip values are always accurate. You can also overwrite the price if you want to test a specific scenario or plan a pending order.
What’s the difference between Risk % and Money mode?
If you choose Risk %, you’re risking a set percentage of your account balance — for example, 1% of $10,000 equals $100. If you switch to Money mode, you can type in a fixed amount instead (e.g. risk exactly $50 every trade). The Swap with Money button lets you switch between the two instantly.
What is a pip, and why does pip size matter?
A pip is the smallest price movement in a forex pair. For most pairs it’s 0.0001, but for JPY pairs it’s 0.01. The pip value tells you how much each pip is worth in your account currency, and that changes with the pair you trade. Our calculator automatically works this out for you so you don’t have to convert anything.
Why does my broker show slightly different results?
Each broker may round prices differently or include their spread or commission in their calculations. That is normal. Our calculator uses standard market data and gives you a precise trade size to the nearest lot fraction. If your broker only allows trades in steps of 0.01 lots, just round to the nearest amount.
How much should I risk per trade?
There’s no single answer, but most experienced traders risk between 0.5% and 2% per trade. Risking small amounts helps you stay in the game longer and avoid big drawdowns during losing streaks.
Does leverage affect position size?
Leverage affects how much margin you need to open a position, but it doesn’t change the pip value or your risk per trade. Our calculator shows how large your trade can be based on your chosen risk — leverage simply determines how much of your balance is tied up to hold that position.
Related Tools
Try our Pip Calculator and Margin Calculator. Compare Forex brokers and check swap rates.
