How position size is calculated
The lot size follows from the money you will risk and how far away your stop is: Lots = (Balance × Risk%) ÷ (Stop in pips × Pip value per lot). Risk a fixed small percentage per trade and the size adjusts automatically to the stop you set.
- 01
Set your risk
A balance and a percentage you are willing to lose on the trade — many traders keep this at 1–2%.
- 02
Set your stop
The distance in pips from your entry to your stop-loss.
- 03
Confirm the pip value
About 10 per standard lot for USD-quoted majors; adjust for other pairs.
- 04
Read the lot size
Round down to the lot step your account allows before placing the order.
Sizing a trade to your stop does not cap the loss if the market gaps straight through it. Keep risk per trade small, and remember CFDs carry a high risk of losing money.
A worked example
On a $10,000 account risking 1% ($100) with a 30-pip stop and a pip value of $10 per lot: Lots = $100 ÷ (30 × $10) = 0.33 lots. Widen the stop to 50 pips and the size drops to 0.20 lots for the same $100 of risk.
Frequently asked questions
How much should I risk per trade?
That is your decision, but many traders cap risk at 1–2% of their balance per trade so that a run of losses does not do lasting damage. The calculator works with whatever percentage you enter.
What is pip value per lot?
The cash change in a one-lot position for a one-pip move. For USD-quoted majors it is about $10 per standard lot; it differs for pairs quoted in other currencies and for gold.
Does a stop-loss guarantee my maximum loss?
No. A stop-loss is filled at the next available price, which in a fast or gapping market can be worse than the stop level, so the loss can exceed the amount you sized for.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This page is general information, not investment advice. Read the Risk Disclosure.