How do you use the calculator?
The calculator gives you the amount at risk, the number of units and your position size in lots using four inputs:
- The currency pair or metal you trade (gold, silver...)
- Your account size
- The percentage of your capital you risk on the trade
- Your stop-loss in pips
How do you find your stop-loss distance in pips?
Your stop-loss distance in pips is the gap between your entry price and your stop.
On TradingView, the Long Position or Short Position tool shows it directly:
- Place your entry at your entry price and your stop at your stop-loss level.
- Read the number shown on the stop line (9.1 here).
- Enter that number in the Stop-loss (pips) field.
What is position size in trading?
Position size is the number of lots you buy or sell in a trade. It depends on your capital, the risk you take and your stop-loss.
How do you calculate your position size?
Position size = (Capital × Risk %) / (Stop in pips × Pip value)
The calculator applies this formula for you.
Calculation examples
Example 1: a $5,000 account trading EUR/USD
You risk 1% of your capital, or $50. Your stop is 20 pips on EUR/USD, where a pip is worth $10 per lot.
- Loss per lot with a 20-pip stop: $200
- Position size: 0.25 lots (25,000 units)
Example 2: a $5,000 account trading gold (XAU/USD)
You risk 1% of your capital, or $50. Your stop is 300 pips on gold, where a pip is worth $1 per lot. One lot of gold represents 100 ounces.
- Loss per lot with a 300-pip stop: $300
- Position size: 0.17 lots
Example 3: a $10,000 account with a wide stop
You risk 2%, or $200. Your stop is 50 pips away.
- Loss per lot with a 50-pip stop: $500
- Position size: 0.4 lots (40,000 units)
Why use a lot size calculator?
An oversized position can cost you a large part of your account in a single trade. The calculator matches your position size to your risk so you can stick to your plan.
With a calculated position size, you can:
- Limit your loss on each trade
- Preserve your capital over the long term
- Avoid oversized positions taken without calculating risk
I built this calculator myself. It's free and has no ads.
Trading futures?
For contracts such as the Nasdaq or S&P 500, use my futures position size calculator, which works in ticks and contracts.