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Forex Position Size Calculator

Lock in strict 1% risk percentages by equating your lot sizes to specific pip distances and varying currency pip values.

Don't guess your lot size. Professional trades keep identical monetary risk across completely different pairs.

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Position Sizing Math

To properly size a forex trade and manage drawdown, use:

Lot Size = (Account Balance * Risk %) / (Stop Loss in Pips * Pip Value per Standard Lot)

How it’s used

You input your total checking or margin account equity alongside your strict risk percentage per trade (e.g., 1%). Once you’ve analyzed the chart and located your Stop Loss distance, you input those pips and the current dollar-value of exactly 1 pip for that specific currency pair.

Why it matters

Pip values change constantly based on live exchange rates. A 50-pip stop loss on EUR/USD carries a completely different financial risk than a 50-pip stop loss on GBP/JPY.

This straightforward math prevents you from blowing up your account by ensuring 1% risk is precisely 1%, regardless of cross-currency conversions. Every professional uses a formula like this before issuing single order.

Frequently Asked Questions

A pip is the smallest price move that a given exchange rate makes based on market convention. Most pairs go to 4 decimal places, where the 4th decimal is a single pip.
If you always trade 1 Standard Lot, your monetary risk fluctuates wildly across pairs like EUR/USD and GBP/JPY due to different pip values and stop distances.

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