Position Size Calculator
Work out the exact lot size that keeps a trade's risk at a fixed dollar amount — before you place it, not after.
Size your next trade
Enter your account, risk, stop, and instrument.
$10 per pip, per 1.0 standard lot — standard for USD-quoted majors.
Position size
How position size is actually calculated
Lots = (Account × Risk%) ÷ (Stop Distance × Value per Point)
Instead of picking a lot size that "feels right," you fix your dollar risk first — a percentage of your account — and let the stop distance and instrument's point value tell you exactly how many lots that risk allows.
Worked example — $100,000 account, 1% risk, 200-point stop, forex major
- Dollar risk: 1% of $100,000 = $1,000
- Point value: $10 per point, per 1.0 lot (forex major)
- Lots = $1,000 ÷ (200 × $10) = 0.50 lots
Gold (XAUUSD) point values are broker-specific — always confirm the exact contract size in your MT5 terminal before trading it live. See the gold lot-size guide for a full walkthrough.
Where position sizing usually goes wrong
Sizing after the trade idea, not before
Deciding on 1 lot because it's a 'nice round number,' then finding a stop that fits — instead of the other way around.
Ignoring correlation across open trades
Three 0.5% positions on correlated pairs can behave like one 1.5% position when the market moves against all of them at once.
Using the same size after volatility spikes
When a stop distance doubles in a fast market, keeping the same lot size doubles your dollar risk — cut size to match, not the other way around.
Sizing to the drawdown limit, not away from it
Risking right up to your daily loss limit on one idea leaves zero room for a second losing trade the same day.
For the full risk-management framework behind these numbers, see risk management for funded traders.
Position sizing questions
What's the formula this calculator uses?
Position size (in lots) = (Account size × Risk %) ÷ (Stop-loss distance in points × value per point, per 1.0 lot). This is the same formula ForRealFunding's position-sizing guide teaches: size from your dollar risk, not from a round lot number that feels right.
How much should I risk per trade on a funded account?
Most funded traders risk 0.25%–1% per trade, sized well inside their daily loss limit — not up to it. Use the Drawdown Calculator to see your exact daily and max loss limits in dollars, then size trades so a string of 3 losses stays well under that daily limit.
Why is Gold (XAUUSD) position sizing different from Forex?
Gold's point value per lot depends on your broker's exact contract size and quote convention, which varies more than major forex pairs. Always confirm the precise value from your MT5 terminal's contract specification (Symbols → Specification) before trusting a preset.
Does this calculator account for prop firm drawdown rules?
It calculates position size from your chosen risk percentage — it doesn't read your account's live drawdown limit. Pair it with the Drawdown Calculator to make sure your per-trade risk keeps a realistic number of losing trades inside your daily loss limit.
Should I size the same way in a challenge and on a funded account?
The math is identical, but many traders tighten risk per trade once funded, since a funded-account breach ends real earning potential rather than just a challenge attempt. Some reduce from ~1% to ~0.5% per trade after passing.