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Position Size Calculator

What are lot sizes in forex?
A “Lot” in forex trading refers to the trade size or the number of currency units you are buying or selling. One standard lot equals 100,000 units of the base currency. To get more news about position size calculator, you can visit wikifx.com official website.

Some forex brokers, like Baxia, allow trading in fractional lot sizes starting from 0.01 lots. Note that fractional lot sizes can be categorized as mini lots (0.10) and micro lots (0.01). Please refer to the image below to see the comparison of lot sizes and corresponding currency units.
STEP 1
Select Instrument: You may choose from forex currency majors, crosses, minors and exotics. Additional pairs available are indices, metals, energy (such as gold, silver and oil) and the top popular cryptocurrencies such as Bitcoin (BTC/USD), Ethereum (ETH/USD), Litecoin (LTC/USD), Ripple (XRP/USD) and many more.

STEP 2
Select Stop-loss (pips): Here you can type in the maximum number of pips you are willing to risk on your trade. We will use 100 pips as our stop-loss.

STEP 3
Select Deposit Currency: Your account base currency is important to determine the ideal lot size, this accounts for the pip value and current market rate of the selected cross trading pair. We will choose USD as our deposit currency for this example.

STEP 4
Select Account Balance: This is self-explanatory, you will just need to type in your account equity here. We will input 5,000 as our account equity in our example.

STEP 5
Select Risk: This is a very important field of the Position and Lot size Calculator. Here you can select from a risk percentage or any value in account base currency such as $10, $20, $50, etc. Some experienced traders follow the 2% rule, which means you never put more than 2% of your account equity at risk. This popular risk management rule is commonly used because you would have to make dozens of consecutive 2% losing trades in order to lose all the money in your account.

For our example, we’ll also choose 2% risk. Next, click on the “Calculate” button.

STEP 6
Results: The position and lot size calculator will calculate the current interbank rate (5-digit format) and show the selected currency price (EUR/USD price in our example).

Here we can see using a stop-loss of 100 pips with a 2% risk of our account equity, the recommended lot size is shown as 0.10 lot.

The calculator will show the numbers of units that 0.10 lot represents, which is 10,000 units and lastly, the amount of account equity at risk, or value of the position. In our example, it’s $100. Please refer to the image below.