Position Sizing
Position sizing is the calculation that turns "I want to risk 1% of my account" into a specific number of lots, contracts, or units. It depends on account size, risk percentage, distance to stop, and the per-pip value of the instrument.
Formula
lots = (account_balance × risk_pct) / (stop_loss_pips × pip_value_per_lot)
Per-pip values (Exness micro account, 0.01 lot)
| Symbol | Pip value |
|---|---|
| EURUSD | $0.10 |
| GBPUSD | $0.10 |
| XAUUSD | $0.10 (per 0.1 move) |
| BTCUSD | $0.10 (per $1 move) |
Calculator
Use our position size calculator — enter account size, risk %, and stop distance, and it returns lot size for any supported symbol.
Why traders skip this
Lot sizes look small (e.g., 0.07 lots) and tempt traders to round up. Don't. The asymmetry of drawdown recovery makes oversized positions the #1 account killer.
Related Terms
Risk Management
Risk management is the discipline of sizing positions and placing stops so that no single trade — or string of losses — can ruin your account.
Drawdown
Drawdown is the percentage decline from a peak in your account equity to the next trough — the most important number in risk management.
Pip
A pip is the smallest standard price increment for a trading instrument — usually the 4th decimal for forex, $0.01 for gold.
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