Free tool

Position Size Calculator

Work out how many lots to trade so a single losing trade only costs the percentage of your account you're comfortable risking. Position sizing is the foundation of risk management.

Account balance

Risk per trade

Risking 1–2% per trade is a common risk-management guideline.Stop-loss distance

pips

Pip value per standard lot

≈ $10 for most USD-quoted pairs (e.g. EUR/USD).

Amount at risk

$100

Position size

0.5 lots

≈ Units

50,000

How position sizing works

The formula is simple: position size = (account × risk%) ÷ (stop-loss in pips × pip value per lot). First you decide how much of your account you're willing to lose on the trade (commonly 1–2%). That gives a dollar amount. Divide it by the dollar value of your stop-loss and you get the lot size.

For most pairs quoted in USD, one standard lot (100,000 units) is worth about $10 per pip, so a 20-pip stop costs roughly $200 per lot. Sizing every trade this way keeps any one loss small and survivable — which is what lets a strategy play out over many trades.

Pip Campus is an educational and paper-trading simulation platform. Nothing here is financial, investment, or trading advice, and we do not provide trading signals. All trading involves risk, including loss of capital.

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