If you risk a certain percentage of your account on each position then this tool will calculate a recommended lot size to use so you risk that percentage of your account.
What is a Lot Size Calculator ?
A lot size calculator is a tool that is used by traders to calculate the lot size they should use if they want to risk a certain amount of money or a percentage of their trading account. To calculate the recommended lot size this lot size calculator will use Account balance, Stop loss (in pips) and preferred risk in percentage or in amount
Here’s how to use the Lot Size Calculator
1.Instrument :Select the Instrument you want to determine it’s recommended lot size. You can choose from Forex , Indices , Crypto and Commodities
2.Deposit Currency : Select the currency on which your trading account is based in or the currency on which you want the result to be based.
3.Stop Loss : Enter the number of pips you want your trade’s stop loss to be. This plays a huge role in calculating the lot size
4.Account Balance : Enter total balance of your trading account
5.Risk : Write how much of your total account you are willing to risk in this trade. It can be risk in percentage or in amount it depends to your preference.
6.Contract size (units per lot) : This depends to the type of account you are using but in most cases it will be a standard account which means One Standard Lot is 100 000 units oft the base currency.
Learn more about contract size and lot size
To determine your recommended lot size click on “calculate” and the calculator will use the values you have entered to calculate the lot size you should use if you want to risk the amount you have entered on on the “Risk box”
This is a Lot Size Calculator for:
- Forex or Currency Pairs such as GBPUSD
- Indices such as Nasdaq (US100) , Dow Jones (US30)
- Commodities like Gold (XAU)
- Cryptocurrency like Bitcoin(BTC)