Understand position size
Position Size Calculator
Explore how a hypothetical loss amount, stop distance and pip value relate in a simplified example. The result is a math example, not a recommended trade size.
Your example
Simple formula
Hypothetical amount÷(stop pips×pip value per lot)=lots
This excludes commissions, spread, slippage, gaps, currency conversion, margin and provider-specific contract terms. A stop order does not guarantee an exact exit price.
Beginner guide
How to use the Position Size Calculator
Position sizing relates a hypothetical loss amount to the distance between an entry and a planned stop, using an estimated value per pip per lot. The inputs are assumptions for learning; the output is not a personal recommendation.
- 1
Enter a hypothetical amount
Use a worksheet example to explore the formula. The tool does not say how much anyone should risk.
- 2
Enter the stop distance
Provide a positive distance in pips, not the stop price. A wider distance generally lowers the lot result when other inputs stay fixed.
- 3
Enter the pip value per lot
Use a value in the same currency as the hypothetical amount. The correct value depends on the instrument and account details.
- 4
Choose a display currency
This changes the label only. It does not convert the numbers you entered.
Worked example
For illustration only, a hypothetical USD 100 amount, a 40-pip stop distance and USD 10 per pip per lot produce 0.25 lots in this simplified calculation.
USD 100 ÷ (40 pips × USD 10 per pip per lot) = 0.25 lots
What the result means
The output is the arithmetic size for those exact assumptions, before other costs or execution differences. It is not a safe, suitable or recommended position size, and a stop does not guarantee the assumed loss limit.