Your risk inputs
This calculator is for educational risk-management calculations only. It does not recommend any trade, leverage level or risk percentage.
How position size is calculated
The calculator first works out how much money you have chosen to risk, then divides that amount by the stop-loss distance multiplied by the pip value for one standard lot.
Amount at Risk = Account Balance × Risk %
Standard Lots = Amount at Risk ÷ (Stop-loss Pips × Pip Value per Standard Lot)
Worked example
If an account balance is £10,000, the chosen risk is 1%, the stop loss is 50 pips and one standard lot is worth £10 per pip, the amount at risk is £100 and the estimated position size is 0.20 standard lots.
Frequently asked questions
What is position sizing?
Position sizing is the process of deciding how large a trade would be based on a chosen monetary risk and stop-loss distance.
Does this calculator choose a safe risk percentage?
No. You enter the percentage yourself. The tool only performs the arithmetic and does not recommend a risk level.
Why do I need pip value?
Pip value translates price movement into money. It varies with the pair, trade size and account currency, so use the Pip Calculator to estimate it first.
