RISK MANAGEMENT

Position Size Calculator

The #1 rule of trading: manage your risk. Calculate the exact position size to never risk more than you should.

Your Trade Setup

💵 Account Balance

⚠️ Risk Per Trade

Risk Amount: $100.00

🛑 Stop Loss (Pips)

pips

💱 Currency Pair

0.20

Standard Lots

Mini Lots (0.1) 2.0

Micro Lots (0.01) 20.0

Units 20,000

💰

Max Loss on This Trade $100.00

📊

Pip Value $2.00 / pip

Risk Level

Conservative Balanced Aggressive

Never risk more than 1-2% of your account on a single trade. This ensures you can survive a losing streak without blowing your account.

Always set your stop loss BEFORE calculating position size. Your stop loss determines your risk, not the other way around.

Don't increase position size after wins or decrease after losses. Emotional sizing leads to blown accounts.

Your actual risk includes the spread. Add spread pips to your stop loss for more accurate risk calculation.

Position Size = (Account Balance × Risk %) (Stop Loss in Pips × Pip Value)

Example: $10,000 account × 1% risk = $100 risk ÷ (50 pips × $10/pip) = 0.20 lots

Open an account with AvaTrade and get up to $10,000 bonus to practice proper position sizing.