Position size calculator
How many lots can you trade so that hitting your stop loss costs exactly the amount you planned to risk? Enter your account, risk and stop, and the calculator does the rest, for currency pairs and for gold.
- Position size
- 0.20 lots
- Units
- 20 oz
- Risk amount
- 100.00 USD
- Risk at this size
- 100.00 USD
- Value per lot (1 price $)
- 100.00 USD
- Exact size (unrounded)
- 0.2000
Rounded down to 0.01 lot so the real risk never exceeds the plan. Spread, commission and slippage are not included.
How to use it
- Account currency and balance. Use the balance you actually trade with, not a target.
- Risk. Either a percentage of the balance (most traders use 0.5% to 2%) or a fixed amount.
- Instrument and stop loss. For currency pairs the stop is in pips. For gold (XAUUSD) and silver it is the price distance in dollars: a stop from 4,150.00 to 4,145.00 is 5.
- Read the position size in lots. It is rounded down to 0.01 lot, so your real risk is never above the plan.
The formula
Lots = Risk amount ÷ (Stop distance × Value of one unit for 1 lot)
- Risk amount = Balance × Risk % (or the fixed amount you entered).
- For pairs quoted in US dollars (EURUSD, GBPUSD, AUDUSD, NZDUSD) one pip on 1 standard lot (100,000 units) is worth $10.
- For pairs quoted in another currency the pip value is converted: on USDJPY one pip on 1 lot is 1,000 yen, which is about $6.67 when USDJPY is 150.
- Gold: 1 lot = 100 ounces, so a $1 move in price is worth $100 per lot. Silver: 1 lot = 5,000 ounces, $1 = $5,000 per lot.
Worked example: gold
Balance $10,000, risk 1%, buy XAUUSD at 4,150 with the stop at 4,145 (a $5 stop).
Risk = $10,000 × 1% = $100 → Lots = $100 ÷ ($5 × $100) = 0.20 lot
If the stop is hit you lose about $100 plus spread and commission. With a $10 stop the same risk allows only 0.10 lot: a wider stop always means a smaller position.
Worked example: EURUSD
Balance $5,000, risk 2% = $100, stop 25 pips. Lots = $100 ÷ (25 × $10) = 0.40 lot.
Common mistakes
- Choosing the lot size first and placing the stop wherever the money runs out. The stop belongs where the trade idea is wrong (beyond the structure or the liquidity level); the lot size follows from it.
- Forgetting the contract size. Some brokers use different contract sizes for gold, silver or indices, or offer cent accounts. Check the contract specification in MT4/MT5 (right-click the symbol → Specification).
- Ignoring costs. Spread, commission and slippage come on top of the stop. In fast news the fill can be worse than the stop price.
- Raising the risk after losses to "win it back". The percentage stays fixed; the money amount shrinks with the balance, which protects the account.
Exchange rates come from the same live market feed as our gold price and are refreshed every few minutes. Your broker's rates, contract sizes and lot steps decide the final numbers.
Frequently asked questions
What lot size should I use for a $1,000 account?
It depends on your stop, not on the balance alone. With 1% risk ($10) and a 20-pip stop on EURUSD the size is $10 ÷ (20 × $10) = 0.05 lot. On gold with a $5 stop it is $10 ÷ ($5 × $100) = 0.02 lot.
How much is one pip worth on gold (XAUUSD)?
Brokers differ in what they call a pip on gold, so this calculator uses the price distance in dollars instead. With the standard contract of 100 ounces, a $1 move is worth $100 per lot, $10 per 0.1 lot and $1 per 0.01 lot.
Why is the result rounded down?
Most brokers allow steps of 0.01 lot. Rounding down keeps the real risk at or below what you planned. The exact, unrounded size is shown as well.
Does the calculator include spread and commission?
No. It calculates the loss at the stop price. Spread, commission and slippage are extra, so many traders round down further or plan a slightly smaller risk.
What risk percentage is reasonable?
Many professional risk guidelines keep the risk per trade between 0.5% and 2%. Ten losses in a row at 1% cost about 9.6% of the account; at 5% they cost about 40%. Use the risk management calculator to see this for your own numbers.
Education only, not investment advice. Trading forex, gold and CFDs carries a high risk of losing money.