Position Size Calculator

What is Position Sizing?

Position sizing determines how many lots to trade based on your risk tolerance. It's the single most important factor in long-term trading survival. The formula: Position Size = Risk Amount / (Stop Loss × Pip Value per Lot).

Risk Management Rules

• 1% Rule — Never risk more than 1% of account per trade. Professional standard
• 2% Rule — Maximum for aggressive traders. Allows ~35 consecutive losses before 50% drawdown
• Fixed Dollar — Risk a fixed amount ($100) regardless of account size. Simpler but less adaptive

Reward-to-Risk Ratio

Always aim for at least 1:2 R:R. With 1% risk and 1:2 R:R, you only need to win 34% of trades to be profitable. At 1:3 R:R, you need just 26%.