Lot Size Calculator
Work out a position size from your account balance, risk %, and stop-loss distance.
Adjust contract specs
Why it matters
Position sizing is the one risk decision you make on every single trade — get it right and your worst trades stay small and recoverable. It's the first thing we drill into in the mentorship's risk model, before entries or strategy even come up.
Get your risk model reviewed in MentorshipMethodology
Position size
Lots = (Account Balance × Risk %) ÷ (Stop-Loss Distance × Pip/Point Value per Lot)- 1Decide how much of your account you're willing to risk on this one trade — most trading educators teach staying at or under 1–2% per trade.
- 2Work out your dollar risk budget: account balance × risk %.
- 3Measure your stop-loss distance in pips (forex/metals) or points (indices) from your entry.
- 4Divide your risk budget by (stop-loss distance × the pip/point value for one standard lot of your instrument) to get the position size that keeps your risk at exactly your budget.
Worked example
Inputs
- Account balance
- $1,000
- Risk per trade
- 1%
- Stop-loss distance
- 20 pips
- Instrument
- EURUSD ($10/pip per standard lot)
Result
- Risk budget
- $10
- Position size
- 0.05 standard lots
Why it matters
Position sizing is the one risk decision you make on every single trade — get it right and your worst trades stay small and recoverable. It's the first thing we drill into in the mentorship's risk model, before entries or strategy even come up.
Get your risk model reviewed in MentorshipReferences
- Standard forex contract sizing (100,000 units per standard lot, 10,000 per mini, 1,000 per micro) as implemented by MT4/MT5-style brokers.
- The widely-taught 1–2%-per-trade risk guideline used across retail trading education.
Figures here are for educational planning only — not trading, investment, or tax advice. Confirm exact contract size, margin, and leverage with your own broker or prop firm before trading real size.