// RISK MANAGEMENT

Position Size Calculator

Size every trade to a fixed percentage of risk.

Account balance ($)

Risk per trade (%)

Stop-loss distance (pips)

Pip value per standard lot ($)

Suggested position size0.50 lotsRisking $100 (1% of your account) across a 20-pip stop. Adjust for your broker's exact pip value and instrument.

How position sizing works

Position sizing answers a single question: how large should this trade be so that if the stop-loss is hit, you only lose the amount you decided in advance? Professionals typically risk a small, fixed percentage of the account — often between 0.5% and 2% — on any single trade, so that a losing streak never threatens the account.

The formula is straightforward: position size = (account balance × risk %) ÷ (stop distance × pip value). By fixing the risk percentage rather than the position size, you automatically trade smaller when your stop is wider and larger when it is tighter, keeping the dollar risk constant.

Want to understand the mathematics behind consistent sizing? Read our guide to position sizing mathematics or explore how to manage trading risk.