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4TRD

Forex Position Size Calculator

Risk management starts with correct position sizing. Enter your account size, how much you're willing to risk, and your stop loss — and get the exact lot size to trade.

Position Size Calculator

Calculate optimal lot size based on account risk

Your current account equity

% of account balance to risk per trade

Distance from entry to stop loss in pips

Value of 1 pip per lot in account currency

Why Position Sizing Matters

Position sizing is one of the most critical — and most overlooked — aspects of forex trading. Trading too large a position relative to your account is the single most common cause of blown trading accounts.

The formula

Lot Size = Risk Amount / (Stop Loss in Pips × Pip Value per Lot)

For example: a $10,000 account risking 1% ($100) with a 20 pip stop on EUR/USD (pip value = $10/lot):

Lot Size = $100 / (20 × $10) = 0.5 lots

Risk per trade guidelines

  • Conservative: 0.5% – 1% per trade
  • Moderate: 1% – 2% per trade
  • Aggressive: 2% – 5% per trade (higher drawdown risk)

Most professional traders risk no more than 1–2% of their account per trade. This ensures that even a losing streak of 10 consecutive trades only drawdowns the account by 10–20%, leaving the account viable to recover.