Calculate your optimal position size and lot size based on your stop loss risk.
$100$955%$100$2,000$100,000 (forex)0.02 lots
Stop loss risk is the percentage difference between your entry price and your stop loss price. It tells you how much the price needs to move against you before your stop loss triggers, expressed as a percentage of your entry price.
Position sizing determines how large your trade should be so that if your stop loss is hit, you only lose the dollar amount you are willing to risk. It keeps your losses controlled and predictable.
A lot is a standardized unit of trade size. The nominal value of 1 lot varies by asset and broker. In forex, 1 standard lot typically represents $100,000. On some platforms, especially for crypto or stocks, 1 lot may equal 1 coin or 1 share. Converting your position size to lots helps you enter the correct trade size on your platform.
Position size depends directly on your stop loss distance. A tighter stop loss means each unit of the asset risks less money, so you can take a larger position. A wider stop loss means each unit risks more, requiring a smaller position to stay within your risk budget.
No. Stop loss risk % refers to the price movement between your entry and stop loss. Account risk is the dollar amount you are willing to lose on a single trade.
Because each unit of the asset risks less money when the stop loss is closer, allowing you to hold a larger position while keeping your total risk the same.
Yes. The formula is universal and works for any market — stocks, crypto, forex, futures, and more.
Most traders risk between 0.5% and 2% of their account balance per trade. This keeps drawdowns manageable even during losing streaks.
Check your broker or trading platform's contract specifications. For forex, it's usually $100,000. For other assets, look for "contract size" or "lot size" in the instrument details.