Free Tool
Position Size Calculator (Forex, Gold & Crypto)
Position sizing is the one calculation that decides whether a losing trade is a routine expense or a disaster. This calculator answers the only question that matters before entry: how big can this trade be so that, if the stop is hit, you lose exactly the percentage you planned — and nothing more.
Enter your balance, your risk percentage (professionals rarely exceed 1%), and your entry and stop prices. The size is calculated for you — never the other way around.
Position Size Calculator
How position size is calculated
The formula is: risk amount ÷ (stop distance × pip value). Your risk amount is balance × risk %. For a $10,000 account risking 1%, that is $100. If your stop sits 50 pips away on EUR/USD (where one pip on a standard lot is $10), the correct size is $100 ÷ (50 × $10) = 0.20 lots. The stop placement comes from the chart; the size comes from the math.
Notice what this means: a wider stop does not mean more risk — it means a smaller position. This is why professionals can hold trades through volatility while risking the same fixed fraction every time.
Why traders blow accounts without it
Most blown accounts are not the result of bad analysis — they are the result of good analysis traded at random sizes. A trader who risks 1% per trade needs roughly 70 consecutive losses to halve an account. A trader who risks 10% needs seven. Same strategy, same market, completely different survival odds.
At P4 Provider, sizing before entry is a non-negotiable habit taught from the first week of the Trading Mentorship Program. Every signal we publish includes the stop, precisely so members can size correctly.
Frequently asked questions
What percentage of my account should I risk per trade?
Most professional traders risk between 0.5% and 2% of their account per trade, with 1% being the most common standard. At 1% risk, even a streak of ten consecutive losses draws the account down only about 9.6%, which is fully recoverable.
How do I calculate position size for gold (XAU/USD)?
For gold, one standard lot is 100 ounces, so a $1.00 move in price equals $100 per lot. Divide your risk amount by (stop distance in dollars × 100) to get your lot size. This calculator does it automatically when you select Gold.
Does a wider stop loss mean I am risking more money?
No — if you size correctly, a wider stop simply means a smaller position. The money at risk stays fixed at your chosen percentage. Risk only grows when you choose a size first and place the stop afterwards.
Is this position size calculator free?
Yes. It is the same sizing logic P4 Provider members use inside the app, published free on the website. No sign-up is required.
Sizing is lesson one. There are four more phases.
The Trading Mentorship Program teaches the complete framework — structure, confluence, execution and risk — live, with a mentor beside you.
Explore the Mentorship ProgramEducational tool only — not financial advice. Results are estimates; broker contract sizes, spreads, commissions and swap can change real outcomes. Learn the concepts on the blog.