Position Size Calculator
Work out how many lots to trade so that a stopped-out trade costs the amount you chose. Contract sizes are editable because brokers differ.
Position size (lots) = the amount you are willing to lose ÷ (distance from entry to stop × contract size per lot), rounded down to your broker's lot step. Enter your risk, your entry and stop prices and the contract size your broker uses. Spread, slippage and commissions are not included.
50,000 units before rounding; size is rounded down to the lot step, so the risk never exceeds your target. Approximate position value: $55,000.00.
Educational calculation. Spread, slippage, gaps, commissions, swaps and margin are not included. Not financial advice.
How the calculation works
- Risk amount. Balance × risk % ÷ 100, or a fixed dollar amount.
- Stop distance. The absolute difference between entry and stop, in price units. It is the same for a long or a short trade.
- Units. Risk ÷ stop distance. For USD/JPY the dollar risk is first converted to yen at the entry price, because the profit and loss are in yen.
- Lots. Units ÷ contract size, rounded down to the lot step so the risk never exceeds your target.
Using price distance instead of "pips" avoids a common error: a pip is not defined the same way for every instrument, and gold and oil have no standard pip. The calculator shows pips only for the three currency pairs, where a pip is standard.
Worked examples
Hypothetical numbers for illustration, not market prices or trade ideas. Each example risks $100 with a stop at the price shown.
| Instrument | Risk | Entry → stop | Distance | Units | Lots |
|---|---|---|---|---|---|
| EUR/USD | $100 | 1.1000 → 1.0980 | 0.0020 | 50,000 EUR | 0.50 |
| Gold (XAU/USD) | $100 | 2000.00 → 1995.00 | 5.00 | 20 oz | 0.20 |
| WTI crude oil | $100 | 70.00 → 69.50 | 0.50 | 200 barrels | 0.20 |
| USD/JPY | $100 (15,000 JPY at 150) | 150.00 → 149.50 | 0.50 JPY | 30,000 USD | 0.30 |
Assumes 1.00 lot = 100,000 units for the currency pairs, 100 ounces for gold and 1,000 barrels for oil. Your broker may differ.
Assumptions and limitations
- Contract sizes are common conventions used as editable defaults, not figures from any broker. VERIFY CURRENT DATA in your broker's contract specification.
- USD account only. USD/JPY is converted at the entry price. Other crosses and account currencies are not supported.
- Spread, slippage, gaps over the stop, commissions, swaps and margin are not modelled. A real loss can exceed the calculated risk.
- Leverage and margin requirements are separate from position size. A size that fits your risk may still not fit your margin.
- The result is a planning figure for education, not advice or a recommendation to trade.
Trading with a daily loss limit
Funded-account evaluations set a maximum daily and overall loss. Enter the daily limit in the calculator to see how much of it a single stop would use: 1% risk against a 3% limit uses about a third of it. Firms define the daily limit from different reference balances, so read the rule you are subject to. The published limits of six evaluation programmes are in our prop firm comparison.
AdSizing trades for a funded account?
Prop firm evaluations set a daily and an overall loss limit. FTMO publishes its rules for each account type on its own site, so read them before you choose. Evaluation fees apply and nothing here promises a pass or a profit.
Explore FTMODisclosure: Some links on this website are affiliate links. If you use them, we may receive compensation at no additional cost to you. This does not determine our editorial analysis, reviews or comparisons.
AdComparing funded programmes?
FundingPips publishes the daily and overall loss limits for each of its programmes on its own site. Read them before you choose. Evaluation fees apply and nothing here promises a pass or a profit.
Explore FundingPipsDisclosure: Some links on this website are affiliate links. If you use them, we may receive compensation at no additional cost to you. This does not determine our editorial analysis, reviews or comparisons.
Compare published daily and overall loss limits · News trading rules
AdPlan the stop on a chart
Mark your entry and stop levels on a chart before you size the trade. Check TradingView's current plans and features on the official site.
Explore TradingViewDisclosure: Some links on this website are affiliate links. If you use them, we may receive compensation at no additional cost to you. This does not determine our editorial analysis, reviews or comparisons.
Managing leverage Your leverage is set by your risk and your stop, not by the broker's maximum.
Effective leverage = risk per trade % ÷ stop distance %. Size the position from the risk first and the leverage follows.
- 1% risk, stop 1% away: position about 1 times the account.
- 1% risk, stop 0.5% away: about 2 times.
- 1% risk, stop 0.25% away: about 4 times. A tight stop raises leverage, so check it before you enter.
Example on a $10,000 account: 1% is $100. With a stop 0.5% away the position is $100 ÷ 0.005 = $20,000, which is 2 times the account (arithmetic, not a forecast).
- The broker's maximum leverage is a ceiling, not a target. Use the stop distance to decide.
- No stop, no trade: every order carries its stop, see Trade Gate.
- Prop firms add their own limits (daily loss, max loss). Check them in the drawdown calculator.
Retail CFD leverage is limited by regulators in some countries. In Australia, ASIC's CFD product intervention order limits the leverage available to retail clients (ASIC consultation CS 64, October 2026; read ASIC's page for the current limits). VERIFY CURRENT DATA with the regulator and your broker.
Frequently asked questions
How do I calculate position size?
Decide how much you are willing to lose if the stop is hit, measure the distance in price between your entry and your stop, then divide the risk by that distance times the contract size per lot. The result is the number of lots. This calculator does it for you and rounds down to the lot step.
What is a lot?
A lot is a standard trade size. In forex, 1.00 standard lot is conventionally 100,000 units of the base currency. For gold and oil CFDs the size of a lot is set by each broker, commonly 100 ounces and 1,000 barrels. Always check your broker's contract specification.
Why does the calculator round the size down?
Brokers only accept sizes in steps, often 0.01 lot. Rounding down keeps the risk at or below the amount you chose. Rounding up would risk more than you planned.
What if the smallest lot already risks too much?
Then your stop is too wide for your risk amount at that lot step. The calculator warns you and shows what the smallest size would risk. You can use a tighter stop, a smaller lot step if your broker offers one, or accept the higher risk knowingly.
Does it include spread, slippage and commission?
No. Real losses can be larger than the calculated risk because of spread, slippage, gaps over the stop, commissions and swaps. Treat the result as a planning figure, not a guarantee.
What risk per trade should I use?
There is no correct number and this page does not recommend one. It shows the consequence of the number you choose. If you trade a funded-account evaluation, its daily and overall loss limits are a hard constraint: enter the daily limit above to see how much of it one stop would use.
Which instruments are supported?
EUR/USD, GBP/USD, USD/JPY, gold, WTI and Brent, for a USD account. Crosses such as EUR/JPY need a different conversion rate and are not supported. Account currencies other than USD are not supported.
Are the prices in the calculator real?
No. The prices loaded on the page are round example numbers so the tool shows something on load. Replace them with your own entry and stop.
Related
- Risk calculator: risk amount and position size in units from price levels.
- Prop firm lot size calculator: the same sizing checked against a funded account's daily and overall loss limits.
- Prop firm loss limits compared
- TradingView guide
- How to trade forex, gold and oil
Written by
Volodymyr KravchenkoIndependent market researcher focused on Forex, Gold, commodities, macroeconomic data and AI-powered financial intelligence.
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Educational research, not personal advice. See our editorial policy and methodology.
This content is provided for educational purposes only and is not investment advice. Trading involves risk, and past performance does not guarantee future results. Affiliate relationships may exist. Always conduct your own independent research before making financial decisions.