| Updated:
Units: 0
Sizing: 0 lots
The Position Size calculator helps you determine how large your trade should be based on risk. You can size a position using either a risk percentage of your account balance or a specific money amount you are willing to lose if the stop loss is hit. It then converts that risk into a practical recommendation in units and lots.
What This Calculator is Used for
Position sizing is one of the most important risk controls in trading. This calculator lets you connect the size of your stop loss (in pips) with your chosen risk limit, producing a position size that matches your plan. It is useful for keeping risk consistent across trades, even when volatility and stop-loss distance vary.
- Risk-based sizing: keep trade risk consistent by using a percentage of balance.
- Fixed-dollar risk: cap downside per trade by setting a specific money amount.
- Stop-loss alignment: size positions correctly for tight vs wide stop losses.
- Planning and journaling: document risk, stop-loss size, and recommended lots in one place.
How to Use It
Start with your account balance and choose whether you want to risk a percentage or a fixed amount. Then enter your stop loss distance in pips and provide an exchange rate when conversion is needed. The calculator will show your implied risk (or money risk) and the resulting units and lots.
- Select the Currency Pair you plan to trade.
- Select your Account Currency.
- Enter your Account Balance.
- Choose your sizing method using the toggle:
- Risk Ratio, % (default): enter the percentage of balance to risk.
- Use Money: ON: enter a fixed money amount to risk.
- Enter your Stop Loss (pips).
- Enter the Base→Account Exchange Rate shown by the dynamic label (example: EURUSD exchange rate).
- Click Calculate to view units and lots. Use Reset to restore defaults.
Fields Explained
This tool estimates pip value using a common convention: for many major forex pairs, a 1-lot position is roughly $10 per pip when denominated in the quote currency, then converted using the exchange rate you provide. Because brokers may use different contract specs or pip values on certain instruments, treat the output as a planning estimate and verify with your platform for exact sizing.
| Field | What it means | Practical guidance |
|---|---|---|
| Currency Pair | The instrument you plan to trade (example: EURUSD). The base currency influences notional size. | Choose the exact pair you will trade so the exchange-rate label stays relevant. |
| Account Currency | The currency your account is denominated in. | The calculator presents money risk in this currency when possible. |
| Account Balance | Your current account equity or balance used to compute risk. | For risk calculations, equity is often more meaningful than balance if you have open positions. |
| Use Money toggle | Switch between risk input as a percentage or as a fixed money amount. | Use percentage for consistency across trades; use money for a strict per-trade cap. |
| Risk Ratio, % | The percent of account balance you are willing to risk (example: 1–2%). | Lower values generally reduce volatility in returns and drawdowns. |
| Money, Account Currency | A fixed amount you are willing to lose if the stop loss is hit. | When this mode is used, the calculator also shows the implied risk percentage. |
| Stop Loss (pips) | The distance between entry and stop-loss level expressed in pips. | Wider stop losses require smaller positions to keep risk constant; tighter stops allow larger size. |
| Base→Account Exchange Rate | A conversion rate used for estimating pip value and sizing in account currency. | Use a current spot rate. If your account currency matches the base, this is often 1. |
Results Explained
The calculator provides both a human-readable risk summary and practical sizing outputs. “Units” is the approximate number of base currency units you are trading, while “lots” is the standard forex lot representation. Use these results to set your trade size in the platform and to confirm your risk stays within your plan.
| Result | Meaning | How to interpret it |
|---|---|---|
| Money / Risk Ratio line | Shows either the money risk (if you entered %) or the implied risk % (if you entered money). | Use this as a quick confirmation that the trade matches your intended risk limit. |
| Units | Estimated base units for the trade size. | Some platforms allow direct unit sizing; otherwise convert to lots. |
| Sizing (lots) | Estimated position size in lots based on your risk input and stop-loss distance. | Round down slightly to stay within risk, especially if your broker rounds lot sizes up. |
Pros and Cons
This tool is valuable because it ties position size to stop-loss distance and risk, which is the core of disciplined trading. It is easy to use and makes your risk approach repeatable. The main limitations are that real pip values can differ by instrument and broker, and execution costs can slightly change outcomes.
Pros
- Helps keep risk consistent across trades using % or fixed money risk.
- Connects stop-loss distance directly to sizing decisions.
- Outputs both lots and base units for flexible platform use.
- Encourages disciplined risk management and repeatable sizing.
Cons
- Uses simplified pip value assumptions that may not match all instruments.
- Does not automatically account for spread, commission, or slippage.
- Accuracy depends on the exchange rate you provide when conversion is needed.
Reliability and Limitations
The outputs are most reliable for standard forex pairs with common contract sizes and when you input a realistic exchange rate. Differences can arise if your broker uses a different pip value model, if the instrument has non-standard tick sizing, or if your execution costs are significant. For best results, round sizing down, confirm the suggested lot size aligns with your platform’s pip value, and always include a buffer for spreads and slippage.
- Most reliable for: disciplined risk-based sizing on standard forex pairs.
- Less reliable for: non-standard instruments, exotic contracts, or accounts with unusual pip-value calculations.
- Tip: when placing a trade, validate the pip value shown by your platform and adjust size slightly lower if needed.