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
Worked Example
Account balance$10,000
Risk per trade1%
Stop loss50 pips
Pip value per standard lot$10
Result
Risk amount$100
Position size0.20 lots
Risking 1% of $10,000 is $100. A 50-pip stop on one standard lot loses 50 × $10 = $500, so the position must be $100 ÷ $500 = 0.2 standard lots (two mini lots) for the stop to cost exactly $100.
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.