Calculating position size by risk
The position size decides how much a losing trade costs – not the stop-loss alone. If you derive it from your risk, every stop costs roughly the same share of your account.
The basic formula
Position size = risk amount ÷ (stop distance × value per price move). The risk amount is the part of your balance you are willing to lose on a stop, for example 1 %.
A worked example
The example is for illustration only. The exact pip value depends on symbol, account currency and broker.
- Balance USD 10,000, risk 1 % → risk amount USD 100
- Stop distance 50 pips on EURUSD
- Value of one pip at 1 lot EURUSD: USD 10
- Position size = USD 100 ÷ (50 × USD 10) = 0.20 lots
Common mistakes
- Assuming the pip value of currency pairs for gold, indices or crypto
- Not checking the broker's contract size
- Using the balance from the start of the month instead of the current one
- Opening every partial position at full size when using several take-profits
With EasyFX
In EasyFX you set your risk per trade. EasyFX calculates the position size for each trade idea from it – using your current balance and your broker's symbol details. You see the calculated size before you approve.
Frequently asked questions
How much risk per trade is usual?
There is no universal number. Many traders use a small percentage of the account; what matters is that you set the value deliberately and stick to it.
Why does the size differ from the example?
Pip value, contract size and smallest tradable size differ by broker and symbol. Sizes are rounded to the steps your broker allows.