How is lot size calculated?
Lot size = risk amount ÷ (stop distance × value of one pip or point for one lot). For example, risking 1% of a 5,000 USD account is 50 USD. With a 25-pip stop on EURUSD, where one standard lot is worth 10 USD per pip, the size is 50 ÷ (25 × 10) = 0.20 lots.
Lot size = risk amount ÷ (stop distance × value per pip or point per lot)
- Account: 5,000 USD, risk 1% = 50 USD
- Stop loss: 25 pips on EURUSD
- One standard lot is worth about 10 USD per pip
- 50 ÷ (25 × 10) = 0.20 lots
These are examples, not advice or a suggestion for any trade.
What information do I need?
- Your account balance or equity
- The percentage (or amount) you want to risk
- Your stop loss, as pips or points, or as entry and stop prices
- Your account currency
- The symbol's contract size
Lot size vs position size
The lot size is the volume you enter in the platform. The position size is the number of units that volume represents. In forex, a standard lot (1.00) is 100,000 units, a mini lot (0.10) is 10,000 units and a micro lot (0.01) is 1,000 units. Metals, indices and crypto use the contract size your broker sets for each symbol.
How much should I risk per trade?
That is a personal decision and depends on your account, experience and tolerance for losses. Many traders use a small fixed percentage, such as 0.5% to 2% of the account. The numbers on this page are examples, not advice. Read the Risk Disclaimer before you trade.
For worked examples on forex, gold, indices and crypto, read our guide How to calculate position size. Trading gold? See Gold lot size in MT5.
Why can my broker's result differ?
Brokers set their own symbol details, so a calculated size can differ slightly from what your platform shows. Common reasons:
- Contract size differs between brokers and symbols
- Tick size and tick value are not the same everywhere
- Converting to your account currency uses a different exchange rate
- The symbol has a different number of digits
- The lot step or minimum volume changes the rounding
- Commissions and spreads are not included in the calculation
To check, open Market Watch in MT4 or MT5 (Ctrl+M), right-click the symbol and choose Specification. Copy its Contract size and Minimum volume into the Contract size and Min lot fields, its Volume step into Lot step, and set Pip size (forex) or Point size (other symbols) from its Tick size and digits, all under Broker settings. Tick value is shown in the same Specification window; the calculator works it out from the contract size and tick size.
How do I use the result in MT4 or MT5?
Open a new order, set Volume to the lot size, and place the stop loss at the price you planned. See the guides for platform setup, or learn the platform step by step in the Academy.
Common lot-size mistakes
- Mixing up pips, points and pipettes
- Rounding the lot size up instead of down
- Ignoring other open trades that share the same risk
- Confusing margin with risk
- Using the wrong contract size for the symbol
Frequently asked questions
What is a pip?
A pip is the usual unit of price movement in forex. For most pairs it is 0.0001, and for pairs quoted in yen it is 0.01. Many brokers quote a tenth of a pip (a pipette) as the last digit.
What is a lot?
A lot is a standard trade size. In forex, 1.00 lot is 100,000 units of the base currency. Metals, indices and crypto use the contract size your broker sets for each symbol.
Does leverage change my risk?
Not directly. Your risk is set by lot size and stop distance. Leverage changes how much margin a position needs, so high leverage makes it easier to open a size that is too large for your account.
Why is my result 0.00?
The risk amount is too small for your stop distance and your broker's minimum volume. Check the minimum volume and lot step in Broker settings, or review your risk and stop inputs.
Do you store my numbers?
No. The calculator runs in your browser; nothing you type is saved or sent.
Is this financial advice?
No, it is a tool for education.
Trading involves a high risk of loss. This calculator is a tool, not advice. See the Risk Disclaimer.