About the Forex Position Size Calculator
In forex, position size is usually expressed in lots: a standard lot is 100,000 units of the base currency, a mini lot 10,000, and a micro lot 1,000. The dollar value of each pip depends on the pair, the lot size, and sometimes the exchange rate.
This calculator works without live data. For pairs quoted in U.S. dollars it derives the pip value; for others you enter your broker's pip value. It is informational and does not recommend any trade or risk level.
How It Works
Dollar risk is your account balance times your risk percentage. The stop distance in pips is the difference between entry and stop divided by the pip size (0.0001 for most pairs, 0.01 for JPY pairs).
Standard lots = dollar risk ÷ (stop pips × pip value per standard lot), rounded down to the nearest 0.01 lot so the risk is not exceeded. For pairs like EUR/USD, a pip is worth $10 per standard lot; for USD/JPY-style pairs the value is pip size × 100,000 ÷ price.
Formula
Example
A $10,000 account risks 1% on EUR/USD, entering at 1.0850 with a stop at 1.0800.
Inputs
- Dollar risk
- $100
- Stop distance
- 50 pips
- Pip value
- $10 per standard lot
Results
- Standard lots
- 0.20
- Mini lots
- 2
- Micro lots
- 20
- Units
- 20,000
Assumptions & Limitations
- Account currency is USD.
- Pip value is derived only when it does not need a live exchange rate; otherwise you enter it. No live market data is used.
- Not included: spreads, commissions, swaps, slippage, and margin requirements, which vary by broker.
- Rounded down to 0.01 lots; some brokers allow smaller increments.
Understanding Your Results
- Position Size: The lot size that keeps the loss at the stop close to your chosen risk.
- Stop Loss Distance: How many pips price must move against you to reach the stop.
- Pip Value Used: The USD value of one pip for one standard lot in this calculation.