Position Size Calculator
Calculate the optimal position size for your trades
📊 Understanding Position Sizing
Position sizing is one of the most important aspects of risk management in trading. It determines how much of your capital you risk on each trade and directly affects your long-term profitability.
Proper position sizing helps you survive losing streaks and maximize your gains during winning periods.
🔍 How Position Size Is Calculated
The calculation involves several key factors:
- Account Size: Your total trading capital
- Risk Percentage: The percentage of your account you're willing to risk
- Stop Loss Distance: The distance from entry to stop loss in pips
- Pip Value: The monetary value of each pip movement
❓ Frequently Asked Questions
What is the recommended risk percentage per trade?
Most professional traders risk 1-2% of their account per trade. This allows you to survive multiple consecutive losses without significantly damaging your account.
How does position sizing affect my trading?
Proper position sizing ensures consistent risk management. It prevents you from risking too much on any single trade and helps maintain steady account growth over time.
Should I always use the same position size?
No, position size should vary based on the distance to your stop loss. Trades with wider stops require smaller position sizes to maintain the same risk level.