Position Size Calculator

How to use this tool

1. Enter the current account balance—not the advertised starting balance if they differ.
2. Choose a risk percentage that fits your written plan and the firm’s loss limits.
3. Measure the actual distance between the intended entry and stop.
4. Confirm the instrument’s pip value for one standard lot and your account currency.
5. Review the estimated size and verify it in the broker or simulation platform before placing a simulated order.

See the calculation in context

For a $50,000 account risking 0.5% with a 25-pip stop and a $10 pip value, the planned risk is $250 and the estimate is 1.00 standard lot.

Calculation method

Risk amount = account balance × risk percentage. Estimated lots = risk amount ÷ (stop distance × pip value per standard lot).

Common mistakes

1. Using leverage as the amount to risk
2. Entering points when the calculator expects pips
3. Ignoring account-currency conversion
4. Forgetting spread, commission, slippage, or minimum lot increments
5. Increasing size merely because drawdown remains

Questions and answers