Calculate Position Size
Recommended: 1-3% per trade
Calculation Results
Risk Amount$200.00
Maximum amount you'll lose if stop loss is hit
Position Size40,000 units
Number of currency units to trade
Lot Size0.40 lots
Standard lots (1 lot = 100,000 units)
Pips at Risk50.0 pips
Distance between entry and stop loss
Risk Management Tips
- • Never risk more than 2-3% of your account per trade
- • Always use stop losses to limit downside risk
- • Aim for a risk-to-reward ratio of at least 1:2
- • Consider market volatility when setting position sizes
Understanding Position Sizing
What is Position Sizing?
Position sizing is the process of determining how much of a particular asset to buy or sell in a single trade. It's a crucial aspect of risk management that helps protect your trading capital.
Why It Matters
Proper position sizing ensures that no single trade can significantly damage your account. It allows you to stay in the game longer and gives your trading strategy time to work.
Risk Management
Most professional traders risk no more than 1-2% of their account balance per trade. This conservative approach helps preserve capital during losing streaks.