Forex Position Size Calculator & Lot Size Calculator

How to use the position size calculator

1. Account balance and currency. Enter the balance in the currency your account is held in. If you have open trades, you can enter your equity instead (see below).
2. Risk per trade (%). The share of the account you accept losing if the stop is hit.
3. Stop loss (pips). The distance from entry to stop, decided from the chart before you size the trade.
4. Currency pair. The calculator converts the pip value into your account currency at the latest ECB reference rate.

The result is the position size in standard lots and in units. Round down to your broker's lot step.

How position sizing works

Risk-based sizing keeps a single losing trade from blowing up your account. The formula:

lots = (balance × risk%) ÷ (pip_value_per_lot × stop_pips)

Pip value depends on the quote currency of the pair and your account currency. For EURUSD with a USD account, one pip per standard lot is exactly $10. For EURJPY with a USD account, one pip is 1,000 JPY per lot — converted to USD using the current JPY→USD rate.

This calculator converts at European Central Bank reference rates via frankfurter.dev, published once per business day around 16:00 CET. Treat results as a close estimate, not a live quote.

Standard lot sizes

• Standard lot — 100,000 units of the base currency
• Mini lot — 10,000 units (0.1 standard lots)
• Micro lot — 1,000 units (0.01 standard lots)

Worked example in another account currency

A euro account of €10,000 risking 1% (€100), with a 30-pip stop on USD/JPY. One pip on one standard lot is 1,000 JPY. At, say, EUR/JPY = 160.00, that is 1,000 ÷ 160 = €6.25 per pip per lot. Thirty pips cost €187.50 per lot, so the position is €100 ÷ €187.50 = 0.53 lots. The same trade in a dollar account gives a different size, because the pip value converts differently.

What does a 0.01 lot mean?

A 0.01 lot is a micro lot: 1,000 units of the base currency. On a pair quoted in US dollars, one pip at 0.01 lots is worth $0.10 in a dollar account. It is the smallest size most retail brokers accept, which matters for small accounts:

• At 0.01 lots, a 25-pip stop on EUR/USD risks $2.50.
• A $200 account risking 1% ($2) can't take that trade at 1%; the smallest position already risks 1.25%.

If the calculator returns less than your broker's minimum, rounding up raises your risk. Either accept the higher percentage knowingly, use a tighter stop only if the chart supports one, or skip the trade.

Choosing a risk percentage

A common rule of thumb is to risk 1–2% of the account per trade. The reason is what losing streaks do. Ten losses in a row, which happens to most strategies eventually:

After a 40% drawdown you need a 67% gain just to get back to where you started. Pick the percentage you could live with through a bad month, not the one that makes a good week look best.

Balance or equity?

With no trades open, balance and equity are the same. With open trades, equity includes their floating profit or loss. Sizing from equity is the more cautious choice when open trades are losing, because the risk amount shrinks with the account. Whichever you use, use it consistently.

Does leverage change position size?

No. The size comes from your risk amount, stop distance and pip value; leverage only sets how much margin the broker holds while the trade is open. Higher leverage lets you open a larger position than the calculator suggests, which is exactly the risk it exists to prevent. Check the margin a position needs with the margin calculator, and read what leverage changes.

Common position-sizing mistakes

• Choosing the lot size first, then placing the stop where it fits. The stop belongs where the trade idea is wrong; the size follows from it.
• Using the same lot size on every pair. A pip on USD/JPY or GBP/JPY is worth a different amount than a pip on EUR/USD, so the same lots mean different risk.
• Forgetting the account currency. A euro or pound account converts pip value; a dollar-based rule of thumb won't match.
• Leaving the spread out of the stop. Charts usually show the bid, but a long position fills at the ask. Measure a 20-pip stop on the chart with a 2-pip spread, and the loss if the stop is hit is 22 pips. Size for 22.
• Rounding up to the broker's lot step. Round down; rounding up quietly raises risk.

Gold (XAU/USD)

This calculator covers currency pairs, not gold. The formula is the same once you know the contract: most brokers use 100 ounces per lot, so a $1 move in gold is $100 per lot. With $100 at risk and a stop $5 away from entry, the position is $100 ÷ ($5 × $100) = 0.20 lots. Check your broker's contract size first; some use different lot definitions for gold. See pips on gold for how brokers count gold pips.

FAQ

How do I calculate forex position size?

Divide the cash you are willing to risk (account balance × risk %) by (pip value per standard lot × stop-loss in pips). The result is your position size in standard lots.

How many lots should I trade with a 20-pip stop?

On a $10,000 account risking 1% ($100) with a 20-pip stop on EUR/USD (where one pip is $10 per lot), trade 0.5 lots: 100 ÷ (10 × 20) = 0.5.

What percentage of my account should I risk per trade?

A common rule of thumb is 1–2% per trade. At 1%, ten losses in a row cost about 9.6% of the account; at 5%, about 40%.

What does a 0.01 lot mean?

A micro lot: 1,000 units of the base currency, about $0.10 per pip on a USD-quoted pair in a dollar account.

What if the calculated size is below my broker's minimum lot?

Rounding up to 0.01 raises your risk above the percentage you entered. Accept the higher risk knowingly, or skip the trade.

Does leverage change my position size?

No. Size comes from risk amount, stop distance and pip value. Leverage only changes the margin the broker holds.

How do I calculate position size for gold (XAU/USD)?

With the usual 100-ounce lot, a $1 move is $100 per lot. Divide your risk amount by (stop distance in dollars × 100). This calculator covers currency pairs only.