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by Bogdan Ulmu
Updated 24 Feb 2025
The Position Size Calculator is an essential tool for Forex traders. It streamlines risk management by accurately determining the optimal trade size. It converts complex variables into actionable insights by factoring in account equity, risk tolerance, stop loss, and specific trading instruments. This calculator empowers traders to enhance precision, control risk, and maximise profitability across diverse markets.
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The Position Size Calculator is a practical trading tool that equips you to determine the appropriate amount of currency units to buy or sell based on the risk level you're comfortable with for each trade. It incorporates several key inputs: your account equity, the risk percentage, the stop loss in pips, and the currency pair being traded.
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The Forex calculator uses these inputs to compute the risk in monetary terms (Risk Amount = Trading Account Equity * Risk Percentage). It then calculates the value of a pip for the specific currency pair (Pip Value = Pip Size * Contract Size) and, finally, determines the ideal position size. The position size is calculated by dividing the monetary risk amount by the product of the number of pips at risk and the pip value (Position Size in Lots = Risk Amount / (Stop Loss in pips * Pip Value)). This calculation ensures that the trader only risks the specified percentage of their account on a single trade, aligning with their overall risk management strategy.
| 🔎 Broker | 🔥Spread Rebate Cashback | 💰 Sign Up | 📅 Monthly or Daily Cashbacks | 🚩 Forex Rebates |
| 🥇Exness | Up to 30% Commission | 👉 Click Here | Daily | ☑️ Yes |
| 🥈AvaTrade | Up to 30% Commission | 👉 Click Here | Monthly | ✅ Yes |
| 🥉 HF Markets | Up to $6.80 per lot | 👉 Open Account | Daily | ✅ Yes |
| 🏅 Tickmill | Up to $9 per lot | 👉 Click Here | Monthly | ☑️ Yes |
| 📌 XM | Up to $13.95 per Lot | 👉 Click Here | Daily | ✅ Yes |
| 📍 RoboForex | Up to 48% Commission | 👉 Click Here | Monthly | ☑️ Yes |
| 🏅 IC Markets | Up to 38% Commission | 👉 Click Here | Monthly | ✅ Yes |
| 📌 Oanda | $1 per Lot per 100 K USD | 👉 Click Here | Monthly | ☑️ Yes |
| 📍 Pepperstone | Up to 12.85% Commission | 👉 Click Here | Monthly | ✅ Yes |
| 🏅 ThinkMarkets | Up to $4.51 per Lot | 👉 Click Here | Monthly | ☑️ Yes |
| 🔎 Broker | 🥇 Exness |
| 📝 Regulation | Multiple |
| 💻 Trading Desk | Market Maker, NDD |
| 🎉 Sign Up Bonus | None |
| ➖ Min. Deposit from | $10 USD |
| 🔁 Spreads from | 0.1 Pips |
| ➕ Max Leverage | 1:2000 |
| 💳 Commission | Yes |
| 🛑 Inactivity Fee | No |
| 🚀 Open an Account | 👉 Click Here |
| 🔎 Range of Markets | 🥇 Standard | 🥈 Standard Cent | 🥉 Raw Spread | 🏅 Zero |
| 📈 Forex | 30% of the Spread | 30% of the Spread | Up to $160 per lot | Up to $160 per lot |
| 📊 Oil / Energies | 30% of the Spread | n/a | Up to $26 per lot | Up to $26 per lot |
| ⚙️ Metals | 30% of the Spread | 30% of the Spread | Up to $26 per lot | Up to $26 per lot |
| 📉 Shares / Equities | n/a | n/a | Up to $14.40 per lot | Up to $14.40 per lot |
| 📌 Indices | 30% of the Spread | n/a | Up to $4.40 per lot | Up to $4.40 per lot |
| 🪙 Cryptocurrencies | 30% of the Spread | n/a | Up to $14.40 per lot | Up to $14.40 per lot |
| 💰 Payments Options | Direct to Broker Account (Daily) | Direct to Broker Account (Daily) | Monthly Cash Back | Monthly Cash Back |
| 💵 Get Cash Back | 👉 Click Here | 👉 Click Here | 👉 Click Here | 👉 Click Here |
| 💰 Get Cash Back | 👉 Click Here |
| ✅ Pros | ❌ Cons |
| Exness is well-regulated and keeps all client funds in segregated accounts with top-tier institutions | There is a limited portfolio of financial instruments offered |
| Traders can choose between several retail investor accounts | Exness offers a limited number of payment methods that can be used for deposits and withdrawals |
| 🔎 Broker | IC Markets Global |
| 📌 Regulation | Regulated by Raw Trading Ltd under the Seychelles Financial Services Authority (FSA) |
| ☪️ Islamic account (swap‑free) | Yes |
| 📒 Demo Account | Yes |
| 💰 Bonus | No bonus offered |
| ✴️ Institutional Accounts | Not offered |
| 👨🏼💼 Managed Accounts | Not offered |
| 📈 Maximum Leverage | 1:500 |
| 💰 Minimum Deposit | Varies by account type (see account registration for details) |
| 📌 PAMM Accounts | Not offered |
| 💹 Margin Call | Not specified |
| ⛔ Stop‑Out | Not specified |
| 💷 Minimum Commission per Trade | Standard: Commission‑free; Raw Spread: From $3 to $3.5 per trade |
| 🪙 Crypto trading offered | Yes |
| 🔒 Segregated Accounts | Yes |
| 👥 Account Types | Standard, Raw Spread, Islamic |
| 🖥️ Trading Platforms | MetaTrader 4, MetaTrader 5, cTrader, WebTrader, TradingView, IC Markets Raw Spread Platform |
| 📙 Educational Resources | Webinars, market analysis, educational materials |
| ☎️ Customer Service Hours | 24/7 multilingual support |
| 🔘 Tradeable Instruments | Forex, CFDs on indices, shares, commodities, cryptocurrencies, bonds, and futures |
| 📍 Focus | Raw spreads, deep liquidity, advanced trading tools |
| 📌 Important Note | CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage |
| 🚀 Open an Account | Click Here |
Eurotrader
| 🔎 Broker | EuroTrader |
| 📌 Regulation | Regulated by: - Eurotrade International Ltd, registered in Mauritius and authorized & regulated by the Mauritius Financial Services Commission (License GB22201125) - Eurotrade Capital Ltd, UK regulated by the Financial Conduct Authority (License 777162) |
| ☪️ Islamic account (swap‑free) | Yes |
| 📒 Demo Account | Yes |
| 💰 Bonus | Special Deposit Bonus available |
| ✴️ Institutional Accounts | Not offered |
| 👨🏼💼 Managed Accounts | Not offered |
| 📈 Maximum Leverage | Up to 1:500 |
| 💰 Minimum Deposit | Varies by account type (see account registration for details) |
| 📌 PAMM Accounts | Yes |
| 💹 Margin Call | Not specified |
| ⛔ Stop‑Out | Not specified |
| 💷 Minimum Commission per Trade | For Standard accounts: Commission‑free pricing is advertised; For Raw or similar accounts: Commissions may apply (typically in the range of $3 to $3.5 per trade on select instruments) |
| 🪙 Crypto trading offered | Yes |
| 🔒 Segregated Accounts | Yes |
| 👥 Account Types | Standard, Raw Spread, Islamic |
| 🖥️ Trading Platforms | MetaTrader 4, MetaTrader 5, cTrader, WebTrader, TradingView, IC Markets Raw Spread Platform |
| 📙 Educational Resources | Eurotrader Education Hub provides: - Video Courses - eBooks - Platform Tutorials - Market analysis and news updates |
| ☎️ Customer Service Hours | 16 hours per day, 5 days a week |
| 🔘 Tradeable Instruments | Instruments available include: - Forex - Cryptocurrency CFDs - Stock CFDs - Indices CFDs - Commodities CFDs |
| 📍 Focus | Focus on reliability, transparency, and fair pricing |
| 📌 Important Note | CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. |
| 🚀 Open an Account | Click Here |
In the next part, we will explain several values that help you correctly set your position size calculator:
1. Trading Instrument:
● This is the financial asset you intend to trade, such as EURUSD, XAUUSD (Gold), or US30 (Dow Jones 30).
● How to Use It: Select your desired trading instrument from the list provided by your broker. This choice determines factors like pip size and contract size.
2. Trading Account Currency:
● This is the currency in which your trading account is denominated, typically USD, EUR, etc.
● How to Use It: Ensure you know the currency of your account as it affects the calculation of pip value and your risk in monetary terms.
3. Trading Account Equity:
● This represents the total value of your trading account.
● How to Use It: Input the current value of your trading account.
4. Risk Percentage:
● This is the percentage of your trading account equity you will risk on a single trade.
● How to Use It: Decide how much of your account you will risk (commonly between 1% to 3%).
5. Stop Loss (in pips):
● It represents the number of pips you will lose on a trade before automatically closing.
● How to Use It: Determine how many pips away from your entry point your stop loss will be set.
6. Pip Size:
● It represents the value of a single pip movement for the trading instrument.
● How to Use It: Your broker typically gives this value. For EURUSD, it's often 0.0001, while for XAUUSD, it's 0.1.
7. Contract Size (units per lot):
● This is the number of units of the trading instrument in one standard lot.
● How to Use It: This information can be found in your MT4/MT5 platform under Symbol Specification. For EURUSD, it's usually 100,000 units, while for XAUUSD, it's 100 ounces.
In this part, we will discover a range of simple yet efficient formulas and examples related to the Position Size Calculator. These formulas are designed to provide a clear understanding of how to apply them in real-world trading scenarios. Whether a novice or professional, you can enhance your ability to calculate position sizes accurately, ensuring better risk management and trading efficiency.
Risk Amount = Trading Account Equity * Risk Percentage
Pip Value for a Standard Lot = EURUSD Pip Size * Contract size (units per lot)
Position Size in Lots = Risk Amount / (Stop Loss (pips) * Pip Value for a Standard Lot)
Position Size in Units = Position Size in Lots x Contract Size (units per lot)
● Trading Account Equity: $10,000
● Risk Percentage: 2%
● Stop Loss: 50 pips
● Pip Size: 0.0001
● Contract Size: 100,000 units
Calculation:
● Risk Amount = $10,000 * 2% = $200
● Pip Value for a Standard Lot = 0.0001 * 100,000 = $10
● Position Size in Lots = $200 / (50 * $10) = 0.4 lots
● Position Size in Units = 0.4 * 100,000 = 40,000 Units
● Trading Account Equity: $10,000
● Risk Percentage: 2%
● Stop Loss: 50 pips
● Pip Size: 0.1
● Contract Size: 100 ounces
Calculation:
● Risk Amount = $10,000 * 2% = $200
● Pip Value for a Standard Lot = 0.1 * 100 = $10
● Position Size in Lots = $200 / (50 * $10) = 0.4 lots
● Position Size in Units = 0.4 * 100 = 40 Ounces/Units
● Trading Account Equity: $10,000
● Risk Percentage: 2%
● Stop Loss: 50 pips
● Pip Size: 0.1
● Contract Size: 10 units
Calculation:
● Risk Amount = $10,000 * 2% = $200
● Pip Value for a Standard Lot = 0.1 * 10 = $1
● Position Size in Lots = $200 / (50 * $1) = 4 lots
● Position Size in Units = 4 * 10 = 40 Units
The FX Position Size Calculator is an indispensable tool for the astute Forex trader. It meticulously incorporates various pivotal elements such as trading account equity, risk tolerance, stop loss parameters, and the nuances of different trading instruments. The calculator's utility is converting complex trading variables into actionable data, enabling traders to determine the most appropriate lot size for each trade.
Forex traders can significantly refine their trade precision and risk management strategies using specific simple formulas and examples. Mastering these calculations to make informed and strategic trading decisions will minimise financial risks while enhancing the potential for profitability. Whether trading EURUSD, XAUUSD, or the dynamics of US30 markets, the Position Size Calculator is helpful in the trader's toolkit. It blends analytical rigour with practical application.
A Forex Position Size Calculator is a critical trading tool that assists in determining the right amount of currency units to buy or sell for each trade based on a trader's risk tolerance and specific trade parameters.
The Forex Position Size Calculator manages risk by calculating the appropriate trade size using inputs like account equity, risk percentage, stop loss in pips, and the currency pair. It ensures traders do not exceed their preferred risk level.
The Forex Position Size Calculator is versatile and can be adapted for various trading instruments, such as currency pairs, commodities, and indices, each with a unique volatility and risk profile. This adaptability empowers you to manage risk across various trading scenarios.
Understanding the Building Blocks: essential Inputs for a Forex Position Size Calculator
Leverage affects the position size calculations in a Forex Position Size Calculator by amplifying potential profits and losses. The calculator helps adjust the trade size to manage the increased risk exposure due to leverage effectively.
Bogdan Ulmu is a financial writer and trading marketing professional who crafts clear, user-friendly guides, tutorials, and tips for investors at every level. Known for breaking down market trends, he blends analytical insight with practical strategies to help readers confidently navigate the fast-paced world of finance.
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