Use our Forex Risk Calculator to determine the appropriate position size based on your risk tolerance. This essential tool helps you manage your risk per trade according to your account size and stop loss strategy.
Forex Risk Calculator
How It Works
The Forex Risk Calculator helps you determine the appropriate position size to maintain consistent risk across your trades. Here's how to use it:
- Account Currency: Select your trading account's base currency.
- Total Capital: Enter your total trading account balance.
- Risk Percentage: Input the percentage of your account you're willing to risk on this trade (typically 1-2%).
- Stop Loss (pips): Enter your planned stop loss distance in pips.
- Calculate: Click the button to see your recommended position size and actual money at risk.
The calculator uses the formula: Position Size = (Account Balance × Risk Percentage) / (Stop Loss in Pips × Pip Value)
Frequently Asked Questions (FAQs)
What is a good risk percentage?
Most professional traders risk 1-2% of their account per trade. This allows for drawdowns while preserving capital for future trades.
How do I determine my stop loss?
Your stop loss should be based on technical analysis (support/resistance levels) or a percentage of your account you're willing to lose.
Does this work for all currency pairs?
Yes, but be aware that pip values vary between pairs (especially JPY pairs where 1 pip = 0.01 instead of 0.0001).
Why is position sizing important?
Proper position sizing helps you stay in the game during losing streaks while maximizing gains during winning streaks.
Should I adjust my risk percentage?
Your risk percentage should remain consistent. Only adjust your position size based on stop loss distance to maintain the same risk per trade.