Calculate optimal lot size from risk percentage and stop loss
Lot size is the most critical risk management decision in forex trading. The formula is simple: Lot Size = Risk Amount / (Stop Loss Pips × Pip Value).
Most professional traders risk no more than 1-2% of their account balance per trade. On a $10,000 account with 1% risk, your maximum loss per trade is $100. With a 50-pip stop loss, that means 0.20 standard lots.