Position Size Calculator

Calculate the exact position size based on your account balance, risk percentage, and stop loss distance.

Posize your position

$
%

Professional traders risk 0.5%–2% per trade

Position Size

0.00 lot

Risk Amount

$0.00

Account at Risk

1% of $10,000

Why Position Sizing Matters

Most retail traders lose money not because their strategy is wrong, but because they risk too much on a single trade. The difference between a profitable trader and a losing one often comes down to one thing: position sizing.

Position sizing answers one question: 'How many lots should I trade given my account size and the risk I'm willing to take?' It sounds simple, but most traders skip this step. They enter with a fixed lot size without asking whether that position makes sense for their account.

Professional traders rarely risk more than 1–2% of their account per trade. With a $10,000 account and 1% risk, you lose $100 on a losing trade. You'd need 100 consecutive losses to blow your account. With 10% risk, you only need 10 consecutive losses — and losing streaks happen more often than you think.

Consecutive losses until account blow-up

Based on a $10,000 account, assuming each loss hits max risk

1% risk per trade
100 losses
2% risk per trade
50 losses
5% risk per trade
20 losses
10% risk per trade
10 losses
20% risk per trade
5 losses

Real Examples

$10,000 account · EUR/USD · 50 pip stop

Conservative
Account$10,000
PairEUR/USD
Stop Loss50 pips
Position Size0.20 lots
Risk Amount$100
After 5 losses-5%
Recovery needed+5.3%
Aggressive
Account$10,000
PairEUR/USD
Stop Loss50 pips
Position Size1.00 lots
Risk Amount$500
After 5 losses-25%
Recovery needed+33%
Over-leveraged
Account$10,000
PairEUR/USD
Stop Loss50 pips
Position Size2.00 lots
Risk Amount$1,000
After 2 losses-50%
Recovery needed+100%

Common Mistakes

#1: Fixed Lot Size

What traders do

Trading 1.0 lot on every trade, ignoring your account size and stop loss distance

The consequence

1.0 lot × 20 pip stop$200
1.0 lot × 100 pip stop$1,000 — 5× gap!

What to do instead

Size adapts to risk. Calculate based on your balance, risk %, and stop loss.

#2: Ignoring Account Currency

What traders do

Your account is in EUR but you're trading USD/JPY as if it's $10/pip

The consequence

Actual risk varies with EUR/USD rate. Your precise calculation becomes an estimate.

What to do instead

Always convert pip values to your account currency before trading.

#3: Revenge Trading at Full Size

What traders do

After a loss, doubling your position size to make it back faster

The consequence

Two trades can destroy 15% of your account and your trading confidence.

What to do instead

Reduce position size after losses, or stop trading entirely.

The Math Behind Position Sizing

Step 1: Calculate your risk amount

Risk Amount = $10,000 × 1% = $100
Account: $10,000Risk %: 1%Risk Amount: $100

Step 2: Determine pip value

Pip Value = $10 per lot (EUR/USD standard lot)
Pair: EUR/USDLot Size: 1.0Pip Value: $10

Step 3: Calculate position size

Position Size = $100 ÷ (50 × $10) = 0.20 lots
Risk Amount: $100Stop Loss: 50 pipsPip Value: $10Position Size: 0.20 lots

Step 3: Calculate position size