Finance & Economics / Forex & Trading
Forex Risk Management & Lot Size Calculator
Formula reference: risk amount = account balance * risk percent; position size lots = (account balance * risk percent) / (stop-loss pips * pip value per lot).
Educational use only. Not investment advice. This does not account for slippage, commissions, or execution differences.
Calculate optimal forex position size based on your account balance, risk percentage, and stop-loss distance, plus your monetary risk per trade.
Formula
risk_amount = account_balance * risk_percent; position_size_lots = (account_balance * risk_percent) / (stop_loss_pips * pip_value_per_lot).
Worked Example
accountBalance10000
riskPercent1
stopLossPips50
pipValuePerLot10
Result: riskAmount: 100; positionSizeLots: 0.2Risking 1% of a 10,000 account with a 50-pip stop and 10 per pip per standard lot gives a position size of 0.2 standard lots and a 100 risk if the stop is hit.
Frequently Asked Questions
How do I find the correct pip value for my pair?
Use the pip value for your specific pair, account currency, and contract size, then enter that value directly as an input.
Should I always use 1% risk per trade?
1% is a common risk-control reference point, but risk tolerance should be set by your own strategy and account constraints.
Does this calculator account for slippage or commissions?
No. It computes position size from stop distance and pip value only; execution costs should be considered separately.