Plan the risk before you place the trade.

A position size calculator is a risk-management tool that estimates how much you can trade based on your account balance, risk amount, stop-loss distance, and the value of each pip, point, tick, or price unit.

The basic calculation is risk amount divided by stop-loss distance multiplied by pip value. For a forex pair where one standard lot is worth 10 quote-currency units per pip, the account-currency conversion rate determines the final value.

The lot size depends on your risk percentage and stop-loss distance. A $10,000 account risking 1% risks $100. With a 50-pip stop on a pair where one standard lot is worth about $10 per pip, the position size would be about 0.20 lots.

Many traders use 1% as a common risk reference, but it is not automatically safe for every strategy, account, or trader. Funded-account rules, drawdown limits, volatility, stop-loss distance, and emotional discipline all matter.

If the amount you are willing to risk stays fixed, a wider stop-loss requires a smaller position size. A tighter stop allows a larger position size, but only if the stop is technically valid.

The conversion rate matters when the instrument’s pip, point, or tick value is not already denominated in your account currency. For example, JPY quote pairs produce pip value in yen first, then that value must be converted into your account currency.

Yes, but you must use the correct value per stop unit from your broker. Gold, indices, crypto, futures, and CFDs can have different contract sizes, tick values, and account-currency conversions.

No. This calculator is an educational planning tool. Always verify values with your broker or platform before placing live trades, and never rely on a calculator alone to decide whether a trade is valid.