Tools Position size
Risk Position size calculator
The single most important calculation in retail trading: how much you're allowed to lose, and the position size that keeps you inside that limit.
- Risk amount
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- Position size (lots)
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- Position size (units)
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- Loss at stop
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The formula
Position size (lots) = (Account × Risk%) ÷ (Stop pips × Pip value per lot)
Defaults explained
- Pip value per standard lot = $10 for USD-quoted majors (EURUSD, GBPUSD, AUDUSD, NZDUSD). Use the pip value calculator for everything else.
- Standard lot = 100,000 units. Mini lot = 10,000. Micro lot = 1,000.
- For JPY pairs, a "pip" is 0.01 (not 0.0001). Use the right pip value.
What 1% risk actually means
On a $10,000 account at 1% risk, you can lose $100 on this trade. If your stop is 20 pips away on EURUSD ($10/pip per lot), the position size that puts $100 at risk is 0.5 lots (50,000 units). Larger than that and one stop-out costs you more than you intended.