Calculate your position size in lots and dollars based on pip risk and account size.
$10,000 USD1% = $100EUR/USD20 pips$100.50 lots$50,000
A pip (percentage in point) is the smallest standard price movement in a forex pair. For most currency pairs, a pip is 0.0001. For JPY pairs, a pip is 0.01. Pips are the standard way forex traders measure price movement and calculate risk.
Pip value depends on the currency pair and your account currency. For pairs where the quote currency matches your account currency (e.g., EUR/USD with a USD account), the pip value is $10 per standard lot. For other pairs, the pip value adjusts based on the exchange rate of the quote currency to your account currency.
Position sizing determines how many lots to trade so that your stop loss distance in pips equals exactly the dollar amount you are willing to risk. This keeps your risk consistent across different pairs and stop loss distances.
A standard lot is 100,000 units of the base currency. A mini lot is 10,000 units, and a micro lot is 1,000 units. The pip value scales proportionally: $10 per pip for a standard lot, $1 for a mini lot, and $0.10 for a micro lot (on XXX/USD pairs with a USD account).
Forex traders typically measure stop loss distance in pips, not as a percentage of price. This calculator is designed specifically for that workflow, making it faster and more intuitive for forex trading.
Most professional forex traders risk between 0.5% and 2% of their account per trade. Risking 1% is a common starting point for consistent risk management.
This calculator estimates pip value automatically. For pairs ending in your account currency (e.g., EUR/USD on a USD account), the pip value is $10 per standard lot. For other pairs, the pip value depends on the current exchange rate.
This calculator is designed for forex currency pairs. For other instruments, use the Universal Position Size Calculator which works across all markets.