Free Tool

Position Size Calculator

Calculate the exact position size for any trade based on your account balance, risk percentage, and stop loss distance.

Position Size

5.00

Standard Lots

Risk Amount

$1,000.00

Stop Loss

20 pips

Mini Lots

50.00

Micro Lots

500.00

How to Use This Calculator

1

Enter your account balance

Your total trading account balance in USD. This is the amount you use to calculate risk.

2

Set your risk percentage

Most professional traders risk 0.5% to 2% per trade. For prop firm challenges, 0.5-1% is recommended.

3

Enter your stop loss

For Forex, enter pips. For Futures, enter ticks. For Crypto/CFD, enter the stop loss price level.

4

Get your position size

The calculator shows the exact lot size (Forex), contracts (Futures), or units (Crypto) to trade.

The Position Sizing Formula

Position Size = Risk Amount / (Stop Loss Distance x Value Per Pip/Tick)

Risk Amount = Account Balance x Risk Percentage. If your account is $100,000 and you risk 1%, your risk amount is $1,000.

Stop Loss Distance = the number of pips, ticks, or price points between your entry and stop loss.

Value Per Pip/Tick = how much each pip or tick is worth in dollar terms. This varies by instrument. For EUR/USD, 1 pip = $10 per standard lot. For ES futures, 1 tick = $12.50.

Why Position Sizing Matters

Position sizing is the single most important risk management decision you make on every trade. Trading too large risks blowing your account on a losing streak. Trading too small means you never reach your profit targets.

For prop firm traders, position sizing is critical. Most prop firms have daily loss limits (typically 2-5% of account) and maximum drawdown limits (5-12%). If you risk 2% per trade and hit 3 losses in a row, you could breach the daily limit and fail the challenge.

The recommended approach: risk 0.5-1% per trade for prop firm challenges, and 1-2% per trade for personal accounts. This gives you enough runway to survive drawdowns while still growing the account.

Get Position Sizing on Your Chart

TradeLog's free 3-in-1 EA for MT4/MT5 includes a built-in position size calculator that draws SL/TP lines on your chart and calculates lot size automatically based on your risk settings.

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