CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
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Free risk-management tool

Position size calculator

A position size calculator tells you how many lots to trade so that a stop loss costs no more than the percentage of your balance you choose. Enter your balance, risk % and stop loss in pips.

USD
%

Distance from entry to stop loss. 1 pip = 0.0001.

Indicative default. Type the current price from your platform.

Result

Position size
0.20 lots
Amount at risk
$100.00
Value per pip (1 lot)
$10.00
Units
20,000

Estimates for a USD account. They exclude spread, commission and swap, and use the price you entered, not a live quote. Size is rounded down to 0.01 lot so the risk does not exceed your target.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Leverage magnifies both gains and losses. Maximum leverage depends on the instrument, account type and your jurisdiction.

How it works

How position size is calculated

The amount at risk is your balance multiplied by the risk percentage. The calculator then finds the pip value of one lot for the chosen instrument.

Dividing the amount at risk by (stop loss in pips × pip value per lot) gives the position size, rounded down to the nearest 0.01 lot.

Risk (USD)  = balance × risk % ÷ 100
Pip value per lot (USD) = pip size × contract size × quote→USD rate
Lots = risk ÷ (stop loss pips × pip value per lot)

Worked example

Example: $10,000 balance, 1% risk, 50-pip stop on EURUSD

  1. Amount at risk = $10,000 × 1% = $100.
  2. Pip value of 1 lot of EURUSD = 0.0001 × 100,000 = $10.
  3. Position size = $100 ÷ (50 × $10) = 0.20 lot (20,000 EUR).
  4. If the stop loss is hit at the planned level, the loss is about $100 plus trading costs.

FAQ

Frequently asked questions

What is position sizing?

Position sizing means choosing the trade size so that, if your stop loss is hit, you lose no more than a set share of your account. It is one of the core parts of risk management.

How much should I risk per trade?

There is no single right number; it depends on your experience, strategy and finances. Many traders limit risk to a small percentage of their balance per trade. Only trade with money you can afford to lose.

How do I calculate lot size?

Divide the amount you are willing to risk by the stop-loss distance in pips multiplied by the pip value of one lot. The calculator does this for you and rounds down to 0.01 lot.

Can a stop loss guarantee my maximum loss?

No. A standard stop loss is executed at the next available price, so in fast markets or over weekend gaps the loss can be larger than planned (slippage).

What is the difference between lots and units?

A lot is a standard contract size. One forex lot is 100,000 units of the base currency, so 0.10 lot is 10,000 units. Gold, oil, indices and crypto use their own contract sizes.

Check pip values

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