Position Size & Risk Calculator
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Use our Position Size and Risk Calculator to easily calculate the recommended lot size, using live market quotes, account equity, risk percentage and stop loss.
What is a Position Size and Risk Calculator
Proper position sizing and risk assessment is a fundamental part of a well designed Money Management plan. Managing risk and knowing what would be the suggested maximum lot one can trade, based on the account equity and the recommended risk percentage, can avoid blowing up an account with a single trade.
It is a crucial part of any sucessful money management plan, allowing traders to protect their account's equity by calculating the ideal lot size based on the risk percentage, and therefore preventing traders from opening an oversized position that could easily erase completely the account equity.
Traders can use this calculator to comfortably and correctely determine the recommended lot size (or units), before opening a trading position on one of the several FX pairs, cryptocurrencies crosses and metals.
We strongly suggest traders to use and integrate this position size and risk calculator with any Money Management plan or any Account Equity Risk Management Plan, before opening a trading position.
How to Use the Position Size and Risk Calculator
Currency pair: Traders can select from Major Forex crosses, Minor pairs and also the most popular cryptocurrencies versus the USD (BTC/USD, ETH/USD, LTCUSD, XLM/USD and XRP/USD) or Gold/Silver versus the USD. Let's choose, for example, the USD/CAD.
Deposit currency: The account base currency is important to assess the ideal lot size, as it takes into consideration the pip value and the market rate of the selected cross. We choose USD as our deposit currency, for this example.
Stop loss (pips): Traders should input the maximum number of pips they are willing to risk, or lose, in a trade, to protect the account equity in case the market goes against their position. For this example we will use 100 pips as our stop loss.
Account balance: Pretty straight forward, traders just need to input their account equity. On our example we will type 2000.
Risk: The crucial field of this Position Size and Risk Calculator! In this field traders can select from a risk percentage or any amount of their account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of their account equity per trade. This technique will allow for traders to last longer with their trading careers, and eventually, also to recoup from previously losing trades. For our example we will select 2% risk.
Now, we hit the "Calculate" button.
The results: The Position Size and Risk Calculator uses a market price live feed with the current interbank rate (in a 5-digit format) and it will display the selected currency pair price (in our example the USD/CAD price).
In this case, using a stop loss of 100 pips and risking 2% of our account equity, the recommended lot size would be 0.05 lot.
Next, the calculator displays the amount of units that 0.05 lot represent; 5,000 units and finally the portion of the account equity at risk, or the value of the position, in this case 40 USD.
You might also find our Drawdown Calculator useful. It can help you to accurately calculate how your trading account equity can be affected after a series of losing trades.
Use this Position Size and Risk Calculator on Your Website
Our tools and calculators are developed and built to help the trading community to better understand the particulars that can affect their account balance and to help them on their overall trading.
Regardless if investors trade the Forex market, cryptocurrencies or any other financial instruments, our complete suite of accurate Forex tools and calculators are programmed to work with any data inputted.
By using live market data, our set of calculators allows traders to always get the most accurate results possible, and they work with most FX pairs, metals and even cryptocurrencies. Also, these great calculators are translated into 23 different languages including Arabic, Russian, Japanese and Chinese.
With an intuitive design and a user-friendly interface, these calculators can be easily integrated with any web page. The substantial advantage is that they are completely unbranded, and can be fully customizable to any color scheme and to fit the layout of any web page.
If you're a webmaster and consider that these calculators can create added value for your website on a "Tools/Calculators" section, you are free to embed them on your website.
The embedding widget can be used as it is or it can be fully configured to match your website’s colours. When you are happy with the settings, simply copy/paste the final code to embed the tool/calculator widget on your page.