Forex Position Size Calculator for Lot Size and Risk.
Find the right lot size for each trade from your balance, the share of it you will risk and the stop loss in pips.
This free forex position size calculator shows the lot size, the money at risk, the profit at your target and the risk-reward ratio, all before you place the order.
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Work Out Your Lot Size.
Type your numbers in the boxes and the results update as you go. The figures shown below are a worked case: a 10,000 account that risks 1% with a 25 pip stop and a 60 pip target.
| Result | Value |
|---|---|
| Standard lots (100,000 units) | |
| Mini lots (10,000 units) | |
| Micro lots (1,000 units) | |
| Total units | |
| Money at risk | |
| Profit at target | |
| Risk to reward | |
| Win rate to break even |
The preset pip values are in US dollars. For a euro or pound account, pick Custom and type the pip value your broker shows in that currency. Yen, franc and Canadian dollar values move with the exchange rate, so treat them as a close guide.
The Position Size Formula.
Lot size comes from one short sum. You take the money you are willing to lose, then divide it by the stop in pips times the pip value of one standard lot.
Lots = (balance × risk %) ÷ (stop loss in pips × pip value per standard lot)
Say your account holds 10,000 dollars and you risk 1% on a trade, which is 100 dollars. Your stop on EUR/USD sits 25 pips away, and one standard lot on that pair is worth 10 dollars a pip.
The sum is 100 ÷ (25 × 10), which gives 0.40 standard lots. That is the same as 4 mini lots or 40 micro lots, so pick whichever step your broker allows.
If price hits the stop, you lose close to 100 dollars and no more, give or take a little slippage. Your account still holds about 9,900 dollars, and the next trade is sized from that new balance.
The stop decides the size, not the other way round. Set the stop where the chart says your idea is wrong, then let the sum tell you how big the trade can be. A wide stop means a small trade, and a tight stop allows a larger one.
How to Use the Position Size Calculator.
Five quick steps take you from a chart idea to a lot size you can type into the order ticket. The whole thing takes less than a minute once you know your stop.
- Enter your account balance and currency.
- Choose the share of the balance to risk, such as 1%.
- Pick the pair, or type a custom pip value.
- Add your stop loss and take profit in pips.
- Copy the lot size into your order ticket.
Round the lot size down, never up, to the nearest step your broker accepts. Rounding down keeps the loss at or below your limit if the stop is hit.
Lot Sizes at a Glance.
Each lot type is ten times the one below it. The pip values here are for pairs quoted in US dollars, such as EUR/USD.
| Lot type | Size in lots | Units of base currency | Pip value on EUR/USD |
|---|---|---|---|
| Standard | 1.00 | 100,000 | About $10 |
| Mini | 0.10 | 10,000 | About $1 |
| Micro | 0.01 | 1,000 | About $0.10 |
Gold works the same way with its own unit. One standard lot of XAU/USD is 100 ounces, so each 10 cent move in price is worth 10 dollars to that lot.
- Pip
- The small step a price moves in, such as 0.0001 on EUR/USD.
- Lot
- The unit you buy or sell in, set by how many units of the base currency it holds.
- Stop loss
- An order that closes the trade at a set price to cap the loss.
- Risk-reward ratio
- The pips you aim to gain for every pip you could lose.
Position Size Questions.
Short answers to what traders most often ask about lot size, risk per trade and the risk-reward ratio.
How do you work out forex position size?
Multiply your balance by the share you will risk to get the money at risk. Then divide that amount by your stop in pips times the pip value of one standard lot. With 100 dollars at risk, a 20 pip stop and 10 dollars a pip, the answer is 0.50 lots.
What is a good risk-reward ratio in forex?
Many traders look for at least 1 : 2, so the target is twice as far away as the stop. At that ratio you break even by winning about one trade in three. A higher ratio helps, but only when the target sits at a level the market can really reach.
How many units are in a standard, mini and micro lot?
A standard lot is 100,000 units of the base currency, a mini lot is 10,000 units and a micro lot is 1,000 units. On a pair quoted in US dollars, that works out to about 10 dollars, 1 dollar and 10 cents a pip for each size in turn.
How much should a beginner risk on each trade?
Many new traders keep each loss to between half a percent and one percent of the account. At one percent, ten losing trades in a row still leave you with over 90 percent of your money. That gives you time to learn without one bad week ending the account.
Does the calculator work for gold and yen pairs?
Yes. Pick a yen pair or gold from the list and the pip value changes to match. For any other market, or when your broker shows a different figure, choose Custom and type the pip value for one standard lot. The rest of the sum works the same way.
Why is the pip value different for each pair?
A pip is worth a fixed amount in the quote currency, the second one in the pair. When that currency is not the one your account uses, the value has to be converted at the going rate. That is why yen and franc pairs show a value that moves a little each day.
Why Risk to Reward Matters.
The ratio compares what you could make with what you could lose on one trade. With a 25 pip stop and a 60 pip target, you aim to make 2.4 pips for every pip you risk.
A higher ratio means you can be wrong more often and still come out ahead. At 1 : 2.4 you break even if about 29 trades in every 100 hit the target, before costs such as spread.
A target only counts if the market can reach it. Look for the next clear high or low on the chart, and do not stretch the target just to make the ratio look better.
Spread and fees eat into every trade, so a small edge on paper can vanish in practice. Add the spread to your stop distance when the pair you trade has a wide one.
In the TM9 app you can place the stop loss and take profit with the order itself, then set a price alert near each level. That way the plan from this page is the plan the platform follows.
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