Position size calculator

Risk a fixed percentage, not a fixed lot size

The single habit that separates traders who survive from those who do not is sizing each trade so that, if the stop-loss is hit, the loss is a small and known share of the account. Many professionals risk 0.5–2% per trade. The calculator works backwards from that number:

units = (balance × risk %) ÷ (stop distance × value of one pip per unit)

With €5,000, 1% risk and a 25-pip stop on EUR/USD, you can lose €50. One pip on one unit is worth 0.0001 USD, converted to euro, so the position is roughly 22,000–23,000 units, or about 0.22 lots depending on the exchange rate.

What the extra lines tell you

• ESMA margin is the deposit an EU or UK retail broker will block for this position at the maximum leverage for its asset class (30:1 for major pairs, 20:1 for others and gold). See the margin calculator.
• Effective leverage is position value divided by your balance. A 1% risk trade with a tight stop can still mean 5–10x effective leverage; that is normal, but it shows how quickly several open trades add up.

Learn more in our guides to lots and position size and risk management.