Foundation Tool
Position Sizer
Calculate units to trade so you risk a fixed percentage of your account on each trade. The one equation every trader should use before every order.
Inputs
Result
Position size
0.20
standard lots
- Units
- 20,000
- Stop distance
- 50.0 pips
- Risk amount
- USD 100
- Risk %
- 1.00%
If stopped out, you lose USD 100.00. Nothing more.
The math
Position size in units = (Account size × Risk %) / (Stop distance in price × Pip value). This keeps your dollar loss constant regardless of stop distance — the foundation of fixed-fractional position sizing.
Read the full lesson: Position Sizing: The Math That Saves You.