Lot size calculator

Forex trades use lots, which are fixed batches of currency units. Because single currency moves are tiny, brokers divide currency units into 4 standard batch sizes. You don't enter raw currency units on your order ticket. Your order takes a lot volume, including 1.0, 0.1, or even 0.01.

The lot size you choose determines how much money you gain or lose for each pip movement. A pip is a tiny price change in a currency pair. With a 5 decimal place quote, it equals 0.00010. You may check EUR/USD pip values for each of the 4 batch sizes before placing an order.

If you double your lot size, your possible profit and loss double for every pip. You can trade more than just 1 single batch. Your risk limit can be matched with 0.2 lots (2 mini lots). You can also use 0.25 lots (2.5 mini lots).

The forex position size calculator needs 4 details from you before it can size a trade.

1. Enter your account currency and current balance so the tool knows your starting capital.
2. Enter a risk percentage or a cash amount that reflects the loss you accept if the trade goes wrong.
3. Choose the currency pair for your trade, since it sets the value of 1 pip.
4. Enter the stop loss distance in pips, from your entry price to your exit price.

Suppose your account has $10,000 and you choose to risk 1% on EUR/USD. Under that 1% risk limit, you risk $100 on the trade. The standard EUR/USD pip value is $10, so a 50 pip stop loss gives you 0.2 lots, which equals 2 mini lots.

If your account has $5,000 and you risk 1.5% on EUR/USD, your cash risk is $75. A tighter 30 pip stop loss sets your trade size at 0.25 lots, equal to 2.5 mini lots.

You can work out your lot size in 3 steps, based on your current balance, risk percentage and stop loss

1. Multiply your account balance by your risk percentage to find the amount of cash you can afford to lose.
2. For your currency pair, take the pip value for 1 standard lot and multiply it by the distance to your stop in pips.
3. For a single standard lot, divide the cash risk amount by its stop loss cost to get the trade volume.

Multiply Account balance by Risk percentage and Pip value, then divide by Stop loss in pips to find Lot size.

Pip values follow the live exchange rate for pairs whose second currency isn't the US dollar, such as USD/JPY and EUR/GBP. Before calculating your trade volume, you can review the live rate in our pip calculator.

For a single trade, most traders put 1% to 2% of their account balance at risk, and professionals rarely exceed 1%. A 1% risk level keeps your balance protected through a losing streak. Even after 10 losses in a row at 1% risk, you retain 90.4% of your starting capital. If 10 losses occur in a row at 5% risk, only 59.9% of your capital remains.

Your Stop loss distance matters as much as your account balance. A wider stop loss requires fewer lots to keep your cash risk steady. With the same dollar risk, a 50 pip stop needs twice the lot size that a 100 pip stop needs. Always choose a sensible price level for your stop loss before calculating your lot size.

Many traders make the mistake of using the same lot size for every setup. Your cash risk swings up and down with each order when you use 0.1 lots and a 20 pip or 100 pip stop. Recalculate your lot size whenever the distance to your stop changes.