What Is a Position Size Calculator?

A Position Size Calculator helps traders calculate the correct trade size based on account balance, stop loss, and risk percentage. It ensures you risk a fixed percentage of your capital on every trade.

Why Proper Lot Sizing Is Important

Risk management is the most important part of trading. Even profitable strategies fail without correct lot sizing. Professional traders usually risk only 1% to 2% per trade.

Understanding Forex Lot Types

• Standard Lot (1.00) = 100,000 Units
• Mini Lot (0.10) = 10,000 Units
• Micro Lot (0.01) = 1,000 Units
• Nano Lot (0.001) = 100 Units

Choosing the correct lot size protects your trading account and reduces emotional pressure.

How This Calculator Works

The calculator uses this formula:

Risk Amount = Account Balance × Risk %

Lot Size = Risk Amount ÷ (Stop Loss × Pip Value)

It then converts the result into:

• Lots (Trade Size)
• Units (Trade Size)
• Money at Risk

Final Thoughts

Consistent trading success depends more on risk control than strategy. Use this calculator before entering any trade to manage your capital professionally.