Example position size calculation
If your account is $10,000, your risk is 1%, and your stop loss is 20 pips, the risk amount is $100. If one standard lot is $10 per pip, the position size is 0.50 lots.
Risk first
Position size calculator
A position size calculator helps you decide the lot size after you know your account risk and stop loss distance. That keeps the trade sized around risk instead of emotion.
Calculate position size from account balance, risk amount, stop loss distance, pair type, and pip value before you place a forex or gold trade.
Risk amount / (stop loss pips x pip value per lot) = standard lots
Position sizing mistakes to avoid
- Choosing lot size first and adjusting the stop loss afterward.
- Risking a different percentage on every trade without a rule.
- Forgetting that gold, JPY pairs, and cross pairs need different pip value handling.
How to calculate position size
- 1. Enter your account balance or fixed money risk.
- 2. Choose your risk percentage or risk amount.
- 3. Enter the stop loss distance in pips or points.
- 4. Choose the pair so the calculator can estimate pip value.
- 5. Use the lot size result before placing the order.
Position size calculator FAQ
What is position size in trading?
Position size is the number of lots, units, or contracts you trade. It determines how much money is at risk when price reaches your stop loss.
What risk percentage should I use?
Many traders use a fixed risk range such as 0.5% to 2% per trade, but the right number depends on your strategy, drawdown tolerance, and experience.
Does this work for gold trading?
Yes. Select XAU/USD and enter the stop distance in points or pips according to your broker quote format.