Enter your balance, the percent you want to risk and your stop in pips. You get the lot size, the pip value and the dollars at risk, rounded down so you never risk more than you meant to.
How it works
Dollars at risk. Your balance times your risk percent. 1% of a $10,000 account is $100. That is the most this trade should cost if the stop is hit.
Pip value. One standard lot is 100,000 units of a currency. When the US dollar is the second currency, as in EUR/USD, a pip on one lot is worth $10. When it comes first, as in USD/JPY, the pip value depends on the price, so enter it. One lot of gold is 100 ounces, and this calculator counts $0.10 as one pip, $10 on a lot.
Lot size. Dollars at risk divided by the stop in pips times the pip value. The answer is rounded down to 0.01 lots, the smallest size most platforms take.
Example
A $10,000 account risking 1% has $100 to lose. On EUR/USD with a 25 pip stop, one lot moves $10 a pip, so 25 pips cost $250 a lot and the size is 0.40 lots. On USD/JPY at 150, a pip on one lot is $6.67, so the same stop allows 0.60 lots. On gold, a 50 pip stop is a $5.00 move, worth $500 on one lot, so the size is 0.20 lots.
Questions
How do I calculate lot size in forex?
Divide the dollars you want to risk by your stop in pips times the pip value of one lot. Risking $100 with a 25 pip stop on EUR/USD: 100 / (25 x $10) = 0.40 lots.
What is a standard, mini and micro lot?
A standard lot is 100,000 units (1.00), a mini lot is 10,000 (0.10) and a micro lot is 1,000 (0.01). On EUR/USD a pip is worth about $10, $1 and $0.10 on them.
How much is a pip on gold?
Platforms differ. Many count $0.10 as one pip, and one lot is 100 ounces, so that pip is worth $10 a lot and a $1.00 move is worth $100. Check what your platform calls a pip before you set a stop in pips.
What percent should I risk per trade?
Many traders use 0.5% to 1%, because it takes a long losing run to do real damage. Prop firm daily loss limits often push it lower. The right number is one a normal losing streak can't break.
Does this include spread and commission?
No. It sizes the stop distance only, so widen the stop a little to allow for them. To see how a size feels, try it on ChartTrainer's practice account first.