How much should I risk per trade?

Many traders risk 1–2% per trade. Keeping it consistent helps protect your account.

Does it work for MT4 and MT5?

Yes. The result can be used directly in both MetaTrader 4 and MetaTrader 5.

Can I use it for gold and indices?

Yes. The calculator works with forex, metals, and indices. Use pip/point override if needed.

Why is position sizing important?

Proper sizing prevents overexposure, manages drawdowns, and enforces risk discipline.

What is the best forex broker in 2025?

The best forex broker in 2025 depends on your country and trading needs. For African traders, Deriv, RoboForex, and JustMarkets stand out. Globally, brokers like IC Markets, Exness, and XM offer strong regulation, fast execution, and competitive fees.

Which forex brokers accept traders from Africa?

Top forex brokers accepting African traders include Deriv, JustMarkets, Headway, Weltrade, and RoboForex. These brokers are popular due to local payment options, FSCA awareness, and user-friendly platforms.

Are these brokers regulated?

Yes, most listed brokers are regulated by top authorities such as FCA (UK), ASIC (Australia), CySEC (Cyprus), and FSCA (South Africa). Always verify regulation in your region before opening an account.

Which broker is best for beginners?

For beginners, Deriv and XM are great choices due to low minimum deposits, demo accounts, and easy-to-use platforms like MT4, MT5, and WebTrader.

Which brokers allow U.S. traders?

Most offshore brokers restrict U.S. traders. Instead, U.S. clients can use regulated domestic brokers such as IG (via TastyFX) or Forex.com.

Position Size Calculator – Lot Size by Risk (MT4 & MT5)

Use our free Position Size Calculator to quickly determine the correct lot size for any trade. Simply enter your account balance, risk percentage, stop-loss in pips, and the currency pair you are trading. The tool instantly calculates the optimal lot size for MetaTrader 4 (MT4) and MetaTrader 5 (MT5), helping you protect your capital and manage risk like a professional.

Position Size Calculator

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What is Position Sizing?

Position sizing is the process of deciding how many lots to trade on each position. It ensures that your risk per trade is consistent and aligned with your account size. Using a position size calculator helps traders protect their capital, avoid over-leveraging, and apply disciplined money management.

Example Calculation

Imagine you have a $1,000 account and you risk 2% per trade. Your stop loss is 50 pips on EUR/USD. The calculator shows that you should trade 0.40 lots. This means that if your stop loss is hit, you only lose $20 (2% of your balance) — keeping your risk controlled.

Position Size Calculator – FAQs

What is a position size calculator? ▾

It’s a tool that tells you how many lots to trade based on your account balance, risk percentage, and stop-loss size. It keeps your risk consistent from one trade to the next.

How do I choose the right risk percentage per trade? ▾

Many traders use 1–2% of the account balance per trade. Conservative traders may use less; aggressive traders might use more. Keep it consistent so drawdowns remain manageable.

Does the lot size change for different pairs, metals, or indices? ▾

Yes. Pip/point value varies by instrument (e.g., JPY pairs vs. EURUSD, gold vs. indices). Our calculator estimates pip/point values; for exact broker specs, use the Pip/Point Value per Lot (override) field.

Can I use this for MT4 and MT5? ▾

Absolutely. The calculated lot size works the same on MetaTrader 4 and MetaTrader 5.

What if my account currency isn’t USD? ▾

Pip/point values are estimated for USD accounts. If your broker quotes in another currency or uses a different tick size, enter your broker’s exact pip/point value in the override field for precision.

What’s the difference between standard, mini, and micro lots? ▾

A standard lot is 1.00, mini is 0.10, and micro is 0.01. The calculator returns the total lot size (e.g., 0.27), which you can trade as 0.27 or split into multiple orders.

How does leverage affect position size? ▾

Leverage affects the margin required, not your risk per trade. Position size is set by your risk $ divided by (stop in pips × pip value). Use our Margin Calculator to check the required margin for the lot size you plan to trade.

Can I use this for gold (XAUUSD), silver, or indices like US500/GER40? ▾

Yes. We include metals and indices. Because contract specs vary by broker, enter your broker’s pip/point value in the override field for exact results.

Visual guide: Using a Position Size Calculator helps traders control risk and apply consistent lot sizes across forex, indices, and commodities.

Why Position Sizing Matters

Proper position sizing is one of the most important elements of risk management in trading. Even the best trading strategy can fail if lot sizes are too big or inconsistent. By using a Position Size Calculator, traders avoid emotional decisions, protect their account from large drawdowns, and maintain steady growth over time. This approach is widely recommended by experienced traders and educators because it enforces discipline and consistency. Combined with stop-loss placement and a fixed risk percentage per trade, correct sizing can dramatically improve long-term performance.

Common Mistakes Traders Make with Position Sizing

Many traders underestimate how important proper position sizing is. A frequent mistake is risking a fixed lot size on every trade, regardless of account balance or stop-loss distance. This can lead to risking 10% or more of the account on a single trade without realizing it. Another mistake is increasing lot sizes after a loss in an attempt to recover quickly, which often accelerates drawdowns instead of fixing them. By sticking to a disciplined risk percentage and always using a Position Size Calculator, you can avoid these pitfalls and trade with a professional risk management approach.

Tips for Effective Position Sizing

To get the most out of a Position Size Calculator, it helps to follow a few proven tips used by professional traders:

Keep risk consistent – Avoid changing your risk percentage from one trade to another. Consistency reduces emotional bias.
Adjust for volatility – More volatile pairs like GBP/JPY or gold may require smaller lot sizes than major pairs.
Review monthly – Recalculate your lot sizes as your account balance grows or shrinks to stay aligned with your trading plan.

Recommended Brokers

Learn More About Position Sizing

To dive deeper into position sizing and risk management, check out these trusted resources: Babypips Position Sizing Guide and Investopedia on Position Sizing.