Blocktechpro
XAU/USDGold
EUR/USDEuro / US Dollar
GBP/USDBritish Pound / US Dollar
USD/JPYUS Dollar / Japanese Yen
US30Dow Jones index CFD
XAG/USDSilver
XAU/USDGold
EUR/USDEuro / US Dollar
GBP/USDBritish Pound / US Dollar
USD/JPYUS Dollar / Japanese Yen
US30Dow Jones index CFD
XAG/USDSilver

Position Size Calculator for Forex and Gold

Position sizing turns a risk rule, such as "never lose more than 1% on one trade", into a trade size. Enter your balance, the percentage you are willing to risk and your stop-loss distance. The calculator shows the position in lots and in units, the value of one pip and the loss if your stop is hit. You can enter the balance in US dollars, Indian rupees (₹) or Nigerian naira (₦).

ℹ️ 1 lot = 100,000 EUR ($10.00 per pip)

$2,000 USD
1%
25 Pips
Rule of thumb: many traders cap risk at 1–2% of the account per trade. Prices can gap past your stop, so actual losses can be larger.
POSITION SIZEConservative
Recommended lot size
0.08 Lots
Value per pip: $0.8 USDPosition size in units: 8,000 EUR
Loss if stop-loss is hit:-$20 USD (1.0%)
Profit at a 1:2 risk/reward target:+$40 USD
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Trading from India or Nigeria? Check the rules first

India

Nigeria

The calculators only do arithmetic; they do not mean any broker is available, licensed or legal where you live.

Position size formula

Risk amount = Balance × Risk % ÷ 100

Position size (lots) = Risk amount ÷ (Stop-loss in pips × Pip value per 1 lot)

Position size (units) = Lots × Contract size

This is fixed-fractional position sizing: every trade risks the same share of the account, so the position shrinks after losses and grows after gains. The stop-loss comes from your trade setup first; the position size is then adjusted to fit it, not the other way round.

Contract size is 100,000 units per standard lot for forex pairs and usually 100 oz for gold (XAU/USD). The pip value per lot is $10 for pairs quoted in US dollars; for USD/JPY it is about 1,000 ÷ the USD/JPY rate.

Worked examples

EUR/USD, $10,000 account, 1% risk

  1. Risk = $10,000 × 1% = $100
  2. Stop-loss = 40 pips × $10 = $400 per lot
  3. Position = $100 ÷ $400 = 0.25 lots
  4. Units = 0.25 × 100,000 = 25,000 EUR

Trade 0.25 lots (25,000 units): a stop-out loses $100.

Gold, $3,000 account, 0.5% risk

  1. Risk = $3,000 × 0.5% = $15
  2. Stop-loss = $3.00 move = 30 pips × $10 = $300 per lot
  3. Position = $15 ÷ $300 = 0.05 lots
  4. Units = 0.05 × 100 oz = 5 oz

Trade 0.05 lots (5 oz): a stop-out loses $15.

EUR/USD, ₹2,00,000 account, 1% risk

  1. Risk = ₹2,00,000 × 1% = ₹2,000
  2. At USD/INR 88 (example): ₹2,000 ÷ 88 = $22.73
  3. Stop-loss = 30 pips × $10 = $300 per lot
  4. Position = $22.73 ÷ $300 = 0.0757, round down to 0.07 lots

Trade 0.07 lots (7,000 EUR): a stop-out loses $21 (about ₹1,848).

Examples use US-dollar pip values and the contract sizes shown in the calculator; rupee and naira examples use illustrative rates (USD/INR 88, USD/NGN 1,500), not live quotes. Check your broker's contract specification; a gap or slippage past your stop can make the real loss larger.

Frequently asked questions

What is position size in forex?

Position size is how much of an instrument you buy or sell on one trade, shown in lots or units. A position sized to your risk loses a planned amount, for example 1% of your balance, if the stop-loss is hit.

What is the position size formula?

Position size in lots = (balance × risk %) ÷ (stop-loss in pips × pip value per lot). Example: ($10,000 × 1%) ÷ (40 pips × $10) = 0.25 lots, which is 25,000 units on a forex pair.

What is the difference between position size and lot size?

They describe the same thing. Lot size is the position expressed in lots (1.00, 0.10, 0.01); position size can also be expressed in units of currency or ounces of gold. The calculator shows both.

How much should I risk per trade?

Many traders cap risk at 1–2% of the account per trade so that a run of losses does not wipe out the account. This is a common rule of thumb, not a guarantee: price can gap past a stop, so the real loss can be larger than planned.

Do trading costs change the position size?

The formula above sizes the trade on price risk only. Spread and commission add a fixed cost per lot, so tight stops on small accounts lose a bigger share to costs. Our net cost matrix compares spread + commission − rebate per lot by broker.

How do I calculate position size with an INR or NGN account?

Convert the amount you are willing to risk into US dollars at the USD/INR rate your broker uses, then apply the same formula. Example: ₹2,00,000 at 1% risk is ₹2,000, about $22.73 at 88. With a 30-pip stop on EUR/USD ($300 per lot) the position is 0.07 lots. For naira, ₦3,000,000 at 1% is ₦30,000, about $20 at an example rate of 1,500, which gives 0.06 lots on the same stop. Select 'INR (₹)' or 'NGN (₦)' in the calculator and it does the conversion for you.

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