Use Our Lot Size (Position Size) Calculator To Know The Size Of Your Trades


 Our Lot Size (Position Size) Calculator ⬇️


What is a position size? A position size refers to the amount of money you are putting to risk trading the Forex or the financial market. It is a normal and recommended practice never to risk more than 2% of your total account balance. So our lot size calculator is based on that.

Using our position size and risk calculator, you can easily calculate the recommended lot size, using live market quotes, account equity, risk percentage and stop loss.

What Are Lots?

In forex a lot defines the actual trade size, or the number of currency units to be bought or sold in a single trade. One standard lot is 100,000 units of the base currency. 

Most brokers allow trading with fractional lot sizes down to 0.01 or even less on micro accounts. Fractional lot sizes are sometimes referred to as mini lots, micro lots and nano lots.
Lots are broken down in this way:
1 lot = 100,000 units
0.1  lot = 10,000 units
0.01 lot = 1,000 units
0.001 lot = 100 units

How To Use The Position Size and Risk Calculator

Currency Pair: Traders can select from Major Forex crosses, Minor pairs and also the most popular cryptocurrencies paired against the Dollars.

Deposit Currency: This refers to the account base currency. It is important to assess the ideal lot size, as it takes into consideration the pip value and the market rate of the selected cross. We choose USD as our deposit currency, for this example.

Stop Loss (pips): You should input the maximum number of pips you are willing to risk or lose in a trade in order to protect the account equity in case the market goes against your position. For this example we will use 100 pips as our stop loss.

Account Balance: Here, you just need to input your account equity (available balance). In our example we will type 100.

Risk: This is the crucial field of this position size and risk calculator. In this field traders can choose from a risk percentage or any amount of their account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of their account equity per trade. This technique will allow for traders to last longer with their trading careers, and eventually, also to recoup from previously losing trades. For example we select 2% risk, using the EURUSD, 

Now, we hit the "Calculate" button.

The Results: The position size and risk calculator uses a market price live feed with the current interbank rate (in a 5-digit format) and it will display the selected currency pair price (in our example the EURUSD price).

In this case, using a stop loss of 100 pips and risking 2% of our account equity, the recommended lot size would be 0.01 lot.

Next, the calculator displays the amount of units that 0.01 lot represent; 1,000 units and finally the portion of the account equity at risk, or the value of the position, in this case is 2 USD.

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