Turn your account balance, risk percentage and stop-loss into the right lot size.
Amount at risk—
Position size (lots)—
Units—
Pip value at this size—
Why position size matters
Position sizing is how you control risk. Instead of picking a lot size by feel, you decide how much of your account you're willing to lose if your stop-loss is hit, then work backwards to the trade size. Many traders risk between 0.5% and 2% of their balance per trade so that a losing streak doesn't wipe out the account.
The formula
Lots = (balance × risk %) ÷ (stop-loss in pips × pip value per lot)
Example
With a $10,000 balance, 1% risk and a 25-pip stop on EUR/USD: you're risking $100. One lot of EUR/USD is worth $10 per pip, so a 25-pip stop costs $250 per lot. $100 ÷ $250 = 0.40 lots.
Tips
Place your stop-loss where the trade idea is proven wrong, then size the position. Don't move the stop to fit a bigger position.
The calculator rounds down to the nearest 0.01 lot so you never exceed your chosen risk.
Remember that gaps and slippage can make a loss bigger than planned. Read what a stop-loss order is.
Disclaimer: results are estimates for educational purposes and assume standard contract sizes (100,000 units for forex, 100 oz for gold, 5,000 oz for silver). Check the contract specifications in TradeLocker before trading. CFDs are leveraged products and you can lose your money.
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