📊 FXAbsolute — Free Forex Backtesting Tool

Forex Position Sizing Reference Sheet

Lot size formulas · Pip value tables · 1% and 2% risk tables for $1K–$100K accounts

Practice with Live Position Sizing →

Four inputs before lot size

CHECK 23

Contract details come before the position-size answer

A position-sizing reference is only as accurate as its instrument specification and currency conversion. Confirm the trading venue rather than assuming every forex pair, metal, or index uses a standard contract.

  1. Account balance or equity used by the risk rule.
  2. Maximum account-currency loss for the trade.
  3. Chart-based stop distance including execution allowance.
  4. Tick size, tick value, contract size, and conversion rate.

Round down to an executable size and recalculate the actual risk.

The Core Formula

Lot Size = (Account Balance × Risk %) ÷ (Stop Loss in Pips × Pip Value per lot) Position Size (units) = Risk Amount ÷ (SL in pips × pip value per unit)

Example: $10,000 account, 1% risk, 20 pip SL, EURUSD (pip value = $10/lot standard)
→ Risk amount = $100 → Lot size = 100 ÷ (20 × 10) = 0.5 lots

For XAUUSD (Gold): pip value per standard lot ≈ $10/pip but tick size = $0.01. Use: Lot Size = Risk Amount ÷ (SL in points × $10). With 200 point SL and $100 risk: 100 ÷ (200 × 0.1) = 0.5 lots.

Standard Pip Values (USD account, per lot size)

PairStandard Lot (1.0)Mini Lot (0.1)Micro Lot (0.01)Notes
EURUSD$10.00/pip$1.00/pip$0.10/pipBase currency EUR — pip value in USD
GBPUSD$10.00/pip$1.00/pip$0.10/pip1 pip = 0.0001, 5th decimal on MT4/5
AUDUSD$10.00/pip$1.00/pip$0.10/pipFixed when USD is quote currency
NZDUSD$10.00/pip$1.00/pip$0.10/pipFixed when USD is quote currency
USDJPY~$9.10/pip~$0.91/pip~$0.09/pipVaries with USD/JPY rate. 1 pip = 0.01
USDCAD~$7.60/pip~$0.76/pip~$0.076/pipVaries with USD/CAD rate
USDCHF~$11.10/pip~$1.11/pip~$0.11/pipVaries with CHF/USD cross rate
GBPJPY~$9.10/pip~$0.91/pip~$0.09/pipCross pair — pip value in JPY, converted
EURJPY~$9.10/pip~$0.91/pip~$0.09/pipVaries — check broker's pip value tool
XAUUSD (Gold)$10.00/point$1.00/point$0.10/point1 point = $0.01 move. 100 points = ~$1 move

1% Risk Table — Max Dollar Loss at 1% Risk by Account Size

Account Size1% Risk ($)20 pip SL → Lots30 pip SL → Lots50 pip SL → Lots100 pip SL → Lots
$1,000$100.05 lots0.033 lots0.02 lots0.01 lots
$2,500$250.125 lots0.083 lots0.05 lots0.025 lots
$5,000$500.25 lots0.167 lots0.10 lots0.05 lots
$10,000$1000.50 lots0.33 lots0.20 lots0.10 lots
$25,000$2501.25 lots0.83 lots0.50 lots0.25 lots
$50,000$5002.50 lots1.67 lots1.00 lot0.50 lots
$100,000$1,0005.00 lots3.33 lots2.00 lots1.00 lot

Based on EURUSD/GBPUSD with $10/pip per standard lot. XAUUSD and JPY pairs: recalculate using actual pip values above.

2% Risk Table — Max Dollar Loss at 2% Risk by Account Size

Account Size2% Risk ($)20 pip SL → Lots30 pip SL → Lots50 pip SL → Lots100 pip SL → Lots
$1,000$200.10 lots0.067 lots0.04 lots0.02 lots
$2,500$500.25 lots0.167 lots0.10 lots0.05 lots
$5,000$1000.50 lots0.33 lots0.20 lots0.10 lots
$10,000$2001.00 lot0.67 lots0.40 lots0.20 lots
$25,000$5002.50 lots1.67 lots1.00 lot0.50 lots
$50,000$1,0005.00 lots3.33 lots2.00 lots1.00 lot
$100,000$2,00010.00 lots6.67 lots4.00 lots2.00 lots
⚠️ Prop firm accounts: most prop firms (FTMO, E8, TFT) recommend risking 0.5%–1% per trade during challenge phases to preserve daily loss limit headroom. A 5% daily loss limit with 2% risk per trade = you only need 2.5 losers to hit the limit. Risk 1% = 5 losers before the kill switch. More room, less pressure.

Position Sizing Rules — Quick Reference

ScenarioRecommended Risk %Reason
Live account, learning phase0.5%Learning is expensive — minimize cost of education
Live account, established strategy1%Industry standard. Survives 20 consecutive losses before 20% drawdown
Prop firm challenge0.5%–1%Preserves daily loss limit headroom for 5–10 bad trades
Prop firm funded account1%–2%Larger buffer with scale-up programs rewards consistent sizing
Backtesting (learning edge)N/A (track in pips)Pip results matter for testing edge — dollar amounts mislead during learning
High-conviction tradeMax 2%Never exceed 2% even with "certainty" — market doesn't care about conviction

Beginner exploration

Three questions to help you use this page

Open each answer for a plain-language way to read Forex Position Sizing Reference Sheet, test it carefully and decide what to explore next.

What does “Forex Position Sizing Reference Sheet” mean for a beginner?

This page focuses on “Forex Position Sizing Reference Sheet”.Use a forex position-sizing reference for risk per trade, stop distance, pip value, lot increments, account currency, and broker constraints.For “Forex Position Sizing Reference Sheet”, a beginner should identify what the worksheet measures, assumes or teaches before acting on its conclusion.Treat this page's account of “Forex Position Sizing Reference Sheet” as a learning reference rather than a prediction, signal or promise of future performance.

How should a beginner use this page to explore “Forex Position Sizing Reference Sheet”?

For “Forex Position Sizing Reference Sheet”, read the instructions once before filling any field, then use one consistent definition throughout the sheet.While exploring “Forex Position Sizing Reference Sheet”, complete a single real example before copying the template across a larger sample.Keep your “Forex Position Sizing Reference Sheet” record honest: write unknown inputs as unknown instead of filling them with a convenient estimate.Before leaving “Forex Position Sizing Reference Sheet”, review the completed record for missing context before using it to change a trading rule.

How can AI help explore “Forex Position Sizing Reference Sheet” responsibly?

Turn one idea from “Forex Position Sizing Reference Sheet” into a rule with explicit inputs, dates, costs and pass-or-fail conditions.Ask AI to expose missing assumptions in that “Forex Position Sizing Reference Sheet” test, not to guess the next market move.Use the FXAbsolute AI Backtesting Lab to inspect calculations connected to “Forex Position Sizing Reference Sheet” and the assumptions behind them.Reproduce any important “Forex Position Sizing Reference Sheet” result and reserve unseen data before deciding that an apparent pattern is useful.

Continue your exploration of Forex Position Sizing Reference Sheet with the beginner AI prompt guide, or inspect public calculations in the AI Backtesting Lab.