Calculation result
Detailed calculation
Reward targets
| Target | Distance | Close share | Gross profit | Net profit |
|---|
Risk scenario comparison
| Risk | Risk amount | Calculated lots | Required margin |
|---|
Consecutive-loss projection
| Losses | Projected balance | Drawdown |
|---|
Position and exposure summary
Calculation history
| Time | Symbol | Risk | Lots | Stop | Margin |
|---|---|---|---|---|---|
| No calculations saved yet. | |||||
Formula used
Risk amount = Capital × Risk percentage ÷ 100 Pip value per lot = Contract size × Pip size × Conversion rate Risk per lot = Stop pips × Pip value + Spread cost + Slippage cost + Commission Position size = Risk amount ÷ Risk per lot Required margin = Position notional value ÷ Leverage
How to use this calculator
Enter your balance, equity, currency, and available margin. Select the capital basis used for risk. Then choose the required calculation mode.
Select an instrument or enter custom contract details. Add the entry price and currency conversion rate. Confirm the broker lot limits carefully.
Choose a stop-loss method and define trading costs. Add reward targets when planning partial exits. Press calculate to review every result.
Worked example
A trader has a £10,000 account balance. The planned risk is one percent. That creates a £100 risk budget.
The EUR/USD stop is fifty pips away. Costs are included before sizing the trade. The exact lot result depends on conversion.
The calculator rounds down to the broker increment. It also checks margin and portfolio limits. This protects the selected risk ceiling.
| Input | Example value | Purpose |
|---|---|---|
| Account balance | £10,000 | Defines available capital. |
| Risk percentage | 1% | Creates the loss budget. |
| Stop-loss distance | 50 pips | Defines price risk. |
| Leverage | 1:100 | Estimates required margin. |
Position sizing guidance
Lots, units, pips, and ticks
A lot represents a broker-defined contract amount. Forex contracts often use standardised unit sizes. Other instruments can use different contracts.
A pip measures a common price movement. A tick is the smallest quoted movement. Broker specifications should always control the calculation.
Balance and equity
Balance excludes unrealised profit and loss. Equity includes current open-position changes. Free margin reflects capital not supporting positions.
Risk, margin, and leverage
Risk estimates the potential stop-loss loss. Margin reserves capital for the open position. Leverage changes margin, not stop-loss risk.
Important disclaimer
This calculator provides educational estimates only. Trading can cause losses beyond expectations. Verify every specification with your broker.
This page is not affiliated with Myfxbook. No endorsement or partnership is implied. Myfxbook remains its respective owner’s trademark.
Frequently asked questions
What is position sizing?
Position sizing converts a loss budget into lots. It combines stop distance and instrument value. This supports consistent risk across trades.
Should I use balance or equity?
Balance suits accounts without meaningful floating changes. Equity reflects current unrealised results. Conservative traders often use the smaller value.
Why does account currency matter?
Pip value may be quoted in another currency. Conversion places risk in your account currency. Incorrect conversion can distort the final lot size.
Does leverage change my trading risk?
Leverage changes the margin required for exposure. Stop distance still controls planned price risk. Excessive leverage can enable oversized positions.
Why is the lot size rounded down?
Brokers accept defined lot-size increments. Rounding down avoids exceeding the selected risk. Rounding upward can break the risk ceiling.
Should spread and commission be included?
Trading costs can increase the stopped-out loss. Including them creates a more cautious estimate. Actual costs can still differ during volatility.
What happens with cross-currency pairs?
The quote-currency pip value needs conversion. Use a current quote-to-account exchange rate. Manual rates remain available when fetching fails.
Can this calculate metals and indices?
Yes, when correct broker contracts are entered. Pip definitions vary across these instruments. Always confirm contract and tick specifications first.
What is maximum combined portfolio risk?
It limits total planned losses across open trades. Existing risk is added to this trade. Correlated positions can create greater practical exposure.
Is the risk-of-ruin estimate exact?
No, it is an educational approximation. Real results depend on changing strategy performance. Use conservative assumptions and substantial sample sizes.
Can results replace broker calculations?
No, broker margin rules can differ materially. Symbol specifications may change without notice. Treat platform values as the final reference.