Measure the exact distance between entry and stop in price units, pips, points, or ticks before calculating position size.
STEP-BY-STEP
How to use this tool
- Select the planned trade direction.
- Enter the intended entry and invalidation price.
- Enter the correct minimum unit: pip, point, or tick size.
- Optionally enter quantity and dollar value per unit for an estimated loss.
- Check that the stop is on the correct side of entry.
- Use the measured distance in the Position Size Calculator.
WORKED EXAMPLE
See the calculation in context
A long EUR/USD entry at 1.1000 with a stop at 1.0950 has a raw distance of 0.0050. With a pip size of 0.0001, that equals 50 pips.
Calculation method
For a long trade, distance = entry − stop. For a short trade, distance = stop − entry. Selected units = price distance ÷ the pip, point, or tick size.
AVOID THESE ERRORS
Common mistakes
- Using pipette size instead of pip size
- Entering a stop on the wrong side of the trade
- Choosing a stop from desired dollar risk instead of market invalidation
- Applying forex pip conventions to futures or CFDs
- Ignoring spread, gaps, slippage and commissions
FREQUENTLY ASKED
Questions and answers
What unit size should I use?
Use the instrument specification from the broker, exchange, or platform. For many forex pairs a pip is 0.0001, while JPY pairs commonly use 0.01, but specifications can differ.
Should I choose the stop before position size?
A common risk-first workflow defines a technically valid stop, then calculates size from the allowed dollar risk.
Is estimated loss exact?
No. Execution costs, gaps, slippage, contract specifications and currency conversion can change it.