Result
If the result is below your broker's minimum volume, the honest options are a wider account cushion or skipping the trade — not raising the risk percent.
Position sizing is the one calculation that decides whether a losing trade is a routine cost or an account event. The rule: pick the stop-loss first (where the trade idea is invalid), then size the position so that hitting the stop costs a fixed, small fraction of the account — commonly 0.5% to 2%.
This calculator does that arithmetic. It will frequently tell you to trade smaller than feels natural; that is the point.
The formula
Risk amount = account balance × risk percent. Lots = risk amount ÷ (stop distance in pips × pip value per lot). Example: a $5,000 account risking 1% gives $50 of risk. With a 25-pip stop on a pair worth $10 per pip per standard lot, that is $50 ÷ (25 × $10) = 0.20 lots.
Notice what the formula implies: a wider stop means a smaller position, automatically. Volatile instruments and volatile days produce smaller trades — that is the system protecting you, not limiting you. Pip value varies by instrument (see our market reference pages); when in doubt, confirm against your broker's contract specification.
Frequently asked questions
What percentage of my account should I risk per trade?
Common practice is 0.5%–2% per trade, with 1% a widely used default. The number matters less than consistency: risking 1% on every trade means a normal losing streak of five trades costs about 5% — recoverable — while inconsistent sizing means one bad trade can do the damage of ten.
Why does my lot size change between trades?
Because the stop distance changes. The calculator holds your dollar risk constant, so a 50-pip stop produces half the position of a 25-pip stop. If your lot size never changed, your real risk per trade would be swinging wildly with each stop distance.
What pip value should I enter?
For USD-quoted pairs like EURUSD or GBPUSD, about $10 per pip per standard lot. Yen pairs, gold, indices, and oil all use different conventions — check our market reference pages or your broker's contract specification. Automated tools like RezSync Algo read this value live from the broker.
Educational arithmetic, not financial advice. Contract specifications vary by broker — confirm pip and contract values against yours. Trading involves substantial risk of loss; forward-test on a demo account before any live decision.
This math, enforced automatically
RezSync Algo runs these calculations on live broker data for every trade — stop-first sizing, after-cost checks, and a hard drawdown breaker. Demo-first, live strictly opt-in, no promised returns.