Position size calculator
Enter your account balance, the share of it you are prepared to lose on one trade and the distance to your stop. The calculator returns the position size in lots that keeps the loss at the stop within that amount.
One pip on EUR/USD is 0.0001.
Position size
0.40 lots
A whole number of 0.01 lot steps, so the loss at the stop matches your risk amount before costs.
- Amount at risk
- $100.00
- Pip value per lot
- $10.00
- Units
- 40,000 EUR
- Stop distance
- 25 pips (0.0025)
Example values are filled in; replace them with your own. Results are estimates in US dollars and leave out spread, commission and swap.
How the calculation works
Position sizing starts from the loss you accept, not from the size you would like to trade. Decide what share of the account one losing trade may cost, place the stop where the trade idea is proved wrong, and let the distance to that stop set the size: a wider stop means a smaller position for the same risk.
To turn a stop distance into money you need the pip value: what one pip of movement is worth for one standard lot. On EUR/USD and other pairs quoted in US dollars, a standard lot of 100,000 units moves $10 per pip. When the quote currency is not the dollar, the pip value is first worked out in that currency and then converted, which is why the calculator asks for a conversion price such as USD/JPY for a yen pair.
Gold and silver work the same way with different contracts: here a lot of gold is 100 troy ounces with a pip of 0.01, and a lot of silver is 5,000 troy ounces with a pip of 0.001. Not every broker uses these definitions, and some count a 0.10 move in gold as one pip, so compare the stop as a price distance when you check the result against your platform.
The formula
Risk amount = Account balance × Risk % ÷ 100
Pip value per lot = Pip size × Contract size × Conversion rate
Position size (lots) = Risk amount ÷ (Stop distance in pips × Pip value per lot)
- Pip size
- 0.0001 on most currency pairs, 0.01 when the quote currency is the Japanese yen; 0.01 for gold and 0.001 for silver on this page.
- Contract size
- Units in one standard lot: 100,000 of the base currency for a currency pair, 100 troy ounces of gold, 5,000 troy ounces of silver.
- Conversion rate
- What one unit of the quote currency is worth in US dollars. For EUR/USD it is 1; for a yen pair it is 1 ÷ the USD/JPY price.
- Stop distance
- The distance from entry to stop in pips: the price difference divided by the pip size.
Worked example
A trader with a $10,000 account risks 1% on a EUR/USD trade, with the stop 25 pips from the entry price.
- Account balance
- $10,000.00
- Risk per trade
- 1%
- Risk amount
- $10,000.00 × 1% = $100.00
- Pip value per standard lot
- 0.0001 × 100,000 = $10.00
- Position size
- $100.00 ÷ (25 × $10.00) = 0.40 lots
Trade 0.40 lots, 40,000 EUR. If the stop is hit, the loss is $100.00 before spread and commission.
With the same $100.00 at risk on gold and the stop $5.00 away (500 pips of 0.01), the size is 0.20 lots, or 20 troy ounces.
Illustrative numbers, not live quotes.
Frequently asked questions
What risk percentage should I use?
The calculator uses whatever you enter. Many trading courses teach risking about 1–2% of the account on one trade, so that a run of losses cannot empty it; the academy lesson on the 1–2% rule explains the reasoning. It is a convention, not a recommendation for your circumstances.
Why does my broker show a different size?
Brokers differ in contract size, pip definition and lot step, and spread and commission add to what a stopped-out trade costs. Check your broker's contract specification and round down to its lot step, so the loss at the stop stays within your limit.
Can I use it for gold?
Yes. Gold is calculated on a 100-ounce contract with a 0.01 pip, so a stop $5.00 away is 500 pips. If your platform counts gold pips differently, enter the stop as the same price distance in steps of 0.01.
My account is not in US dollars. Does it still work?
The results are in US dollars. To express them in your account currency, convert the dollar figures at the current exchange rate; for a euro account, divide by the EUR/USD price.
Sources
More calculators
- Pip value calculatorWhat one pip is worth in US dollars for any lot size, yen pairs and metals included.Formula and worked example
- Risk/reward calculatorThe distance to your target against the distance to your stop, and the break-even hit rate.Formula and worked example
- Margin calculatorThe margin a position ties up at your leverage, from lot size and price.Formula and worked example
- Profit and loss calculatorThe result of a long or short trade in pips and US dollars, from entry, exit and lot size.Formula and worked example
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An educational tool, not investment advice. Markitel is not a broker or custodian and does not offer real-money trading. Contract sizes, pip definitions and lot steps differ between brokers; check every figure against your broker's contract specifications before you trade.
Trading involves risk of loss. Markitel provides signals and analytics for informational purposes only and is not a registered investment adviser. Past performance does not guarantee future results. Read full disclosure.