Forex Position Size Calculator

Learning to manage risk with Position Size Calculator

The most essential principles in trading is risk management. Whatever your strategy however, if you’re risking too much in a single trade, one mistake can ruin your account. This is the point where the calculation of the size of your position is a must.

What is a Position Size Calculator?

The position size calculator can help traders figure out the number of units (lots shares, lots or contracts) to purchase or sell during a transaction using:

  • Size of the account
  • Risk percentage per trade
  • Stop loss distance

With it, you are ensuring that you will never be liable for more than a certain amount of your trading capital.

Example

Let’s say you have a $10,000 account and you want to risk 2% per trade. Your stop loss is set at 50 pips, and each pip is worth $1.

  1. Maximum risk = $10,000 × 0.02 = $200
  2. Position size = $200 ÷ 50 = 4 lots (micro lots if pip = $1)

This means you should trade 4 micro lots to keep your risk within 2%.

Why It Matters

Without calculating position size, many traders trade too big and blow up their accounts. With a position size calculator, you protect your capital and stay consistent in the long run.

👉 Always remember: Trade size is as important as trade direction.

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