Risk Management Tool
Learn how to calculate optimal position sizes based on your risk tolerance and account size.
Educational Tool: This calculator demonstrates position sizing concepts for learning purposes. Results are educational examples and should not be used as trading advice. Always verify calculations and risk parameters with your broker.
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Your total trading account balance
Percentage of account you're willing to risk per trade (typically 1-2%)
Distance from entry to stop-loss in pips
Value per pip for 1 standard lot (use Pip Calculator to find this)
Position sizing is one of the most important concepts in risk management. It determines how many lots you should trade based on your account size, risk tolerance, and stop-loss distance.
Many traders follow the "2% rule" - never risk more than 2% of your account on a single trade. This helps preserve capital during losing streaks. With proper position sizing, you can survive 50 consecutive losses before depleting your account.
Position Size (lots) = Risk Amount ÷ (Stop-Loss in pips × Pip Value)
Risk Amount = Account Size × Risk Percentage
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Calculate pip values
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Learn risk management
Proper position sizing does not guarantee profits or prevent losses. It's a risk management tool to help preserve capital. Always use stop-losses and never risk more than you can afford to lose.
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