Lot Calculator - position size from risk

Updated 2026-09-13 · free educational tool for Forex, Gold, Bitcoin and the Dow 30 index

The lot calculator turns a trading idea into a concrete position size, based on your account balance, the risk percentage you accept per trade and the stop-loss distance in pips or points. This is the single most important step that keeps a wrong trade a small planned loss instead of a damaged account.

How position size is calculated

The standard formula has three parts: the money at risk per trade, which is the balance multiplied by the risk percentage; the value of one pip in a standard lot of the pair you trade; and the stop-loss distance in pips. Position size is the money at risk divided by the product of pip value and stop pips.

For example, with a 1,000 USD account and 1% risk per trade you are risking 10 USD. If the stop is 20 pips away and each pip of a standard lot is worth 10 USD, those 20 pips equal 200 USD per lot. Dividing 10 USD by 200 USD gives 0.05 lots: that is the correct size for this plan.

Why size matters more than the entry price

Two traders can open the same trade, in the same direction, with the same stop loss, and get completely different long-term results purely because of size. The one who sizes well survives a losing streak and keeps capital to keep trading; the one who sizes too large is out of the game on the first streak.

Three common sizing mistakes

• Using the same size regardless of how wide or tight the stop is, which makes the real risk different on every trade.
• Adding to a losing position instead of closing it at the planned stop.
• Doubling size after a loss to win it back, which turns a bad streak into a bad habit.

How to combine it with TuLaTra AI signals

Every TuLaTra signal page prints a reference entry, stop loss and take profit. Take the distance between that entry and stop loss as the pip input for the calculator, then decide the risk percentage yourself: that turns an educational signal into a controlled trading plan.

See live AI signals · Indicator guides · Chart pattern library · Trading styles

Supported markets

Standard lot = 100,000 base units for forex. Gold, silver, bitcoin and index contract sizes follow common retail conventions shown next to each symbol.