Free tool · position size calculator
Lot size calculator for forex and gold
Enter your balance, how much you are willing to lose and your stop loss. You get the position size that keeps the loss at your stop to your risk, and no more.
- Money at risk
- $0
- Loss if the stop is hit
- $0
- Pip value per lot
- $0
- Loss as % of balance
- 0%
| Risk | Amount | Lots |
|---|
How the lot size calculator works
The right position size depends on three things: how much money is in the account, what share of it you are willing to lose on this trade, and how far away your stop loss is. The calculator turns those three numbers into a lot size.
- Enter your account balance in US dollars.
- Choose your risk per trade, as a percent of the balance or as a fixed dollar amount.
- Pick the symbol and enter the distance from your entry to your stop loss.
The result is rounded down to the nearest 0.01 lot, so the loss at your stop is never above the risk you chose. The table under the result shows the size for other common risk levels.
The lot size formula
Every position size calculator uses the same idea: divide the money you are willing to lose by the money one lot loses over your stop distance.
lots = money at risk ÷ (stop distance × value of that distance per 1 lot)For forex pairs the stop is measured in pips. On pairs quoted in US dollars, such as EURUSD or GBPUSD, one pip on one standard lot (100,000 units) is worth $10. On other pairs the pip value is converted into dollars with the current price, which is why the calculator asks for it.
For gold (XAUUSD) one lot is usually 100 ounces, so a $1.00 move in price is worth $100 per lot. Brokers can use different contract sizes, so check the symbol specification in MetaTrader if your numbers look off.
Examples: EURUSD, USDJPY and gold
| Trade | Risk | Stop | Value per lot | Lot size |
|---|---|---|---|---|
| EURUSD, $5,000 balance | 1% = $50 | 25 pips | $10 per pip | 50 ÷ (25 × 10) = 0.20 |
| USDJPY at 150.00, $10,000 | 2% = $200 | 30 pips | $6.67 per pip | 200 ÷ (30 × 6.67) = 1.00 |
| XAUUSD, $5,000 balance | 2% = $100 | $8.00 | $100 per $1 | 100 ÷ (8 × 100) = 0.12 |
Notice the gold example: 0.125 is rounded down to 0.12. Rounding up would put you over your risk.
How much should you risk per trade?
Many experienced traders risk between 0.5% and 2% of the account on a single trade. The reason is losing streaks. Even a good strategy can lose ten times in a row, and the damage depends on your risk per trade:
| Risk per trade | Account after 10 losses in a row |
|---|---|
| 1% | −9.6% |
| 2% | −18.3% |
| 5% | −40.1% |
| 10% | −65.1% |
A 10% drawdown is easy to recover from. A 65% drawdown needs a gain of almost 190% just to get back to where you started. Read more in our guide to forex money management rules.
Size every trade automatically in MetaTrader 5
A calculator helps, but only if you use it before every single trade, including the fast ones. RavandFX does this on your chart: you drag the stop loss and the lot size updates instantly from your risk. It also caps the lot size by balance and stops new trades once your daily loss limit is reached. You can try it free in the simulator.
Lot size questions
What is a lot in forex?
A standard lot is 100,000 units of the base currency. A mini lot (0.10) is 10,000 units and a micro lot (0.01) is 1,000 units. MetaTrader shows volume in lots, so 0.20 means two mini lots.
How do I calculate pip value?
On pairs quoted in US dollars, such as EURUSD, one pip on one standard lot is worth $10. On other pairs, the pip value is 10 units of the quote currency per lot (1,000 yen on JPY pairs), converted into dollars with the current price.
How do I calculate lot size for gold (XAUUSD)?
With the usual contract of 100 ounces per lot, a $1.00 move is worth $100 per lot. Divide the money you are willing to lose by the stop distance in dollars times 100. For example, $100 ÷ ($8 × 100) = 0.125, rounded down to 0.12 lots. Check your broker's contract size in the symbol specification.
What percentage should I risk per trade?
There is no single right number, but many traders use 0.5% to 2%. Lower risk means a losing streak costs you less and you stay calm enough to follow your plan.
Does the calculator include spread and commission?
No. It calculates the loss from your entry price to your stop. Spread, commission and slippage can add a little to the real loss, so traders often leave a small buffer.