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Position Size Calculator

Calculate the lot size that puts a fixed percentage of your account at risk per trade. Recalculate every trade.

Inputs

Approximate pip values per standard lot. Actual values depend on your broker.

Result

Amount at risk
$50.00
Position size
0.25 lots
Units
25,000

If your stop is hit, you lose exactly the amount above. That is the entire premise of position sizing.

How to use this

Position sizing is the single most important calculation in trading. It is what separates traders who survive their losing streaks from traders who don't. Before every trade, decide three things in this order: (1) what percentage of your account you're willing to risk, (2) where your stop-loss goes based on the structure of the chart, (3) only then, what your position size needs to be. That last number is what this calculator gives you.

For most retail traders, 1% per trade is a reasonable starting point. New traders who are still learning should consider 0.5% or even 0.25% while building experience. The most common mistake is sizing up after a few wins and blowing back the gains on one oversized trade.

Want the framework behind this? See Module 6 of the free Foundations course →