Calculate the correct lot size for your forex and gold trades. Essential risk management for XAUUSD, EURUSD, and all currency pairs.
Answer Capsule: Position size = (Account Balance x Risk%) / (Stop Loss in Pips x Pip Value). Enter your account size, risk tolerance, and stop loss distance to calculate exactly how many lots to trade. Essential risk management for every single trade.
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Formula: Position Size (lots) = (Account Balance × Risk%) ÷ (Stop Loss in Pips × Pip Value per Lot)
Example: $10,000 account, 1% risk, 20 pip stop on EURUSD ($10/pip per lot):
Risk Amount = $10,000 × 0.01 = $100
Position Size = $100 ÷ (20 × $10) = 0.5 standard lots
Why this matters: Using this formula every trade keeps your risk constant regardless of trade setup. The 1% rule ensures you survive 69 consecutive losses before losing 50% of your account —giving you ample time to recover from any drawdown.
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