Position size is the amount you are willing to risk divided by the distance between your entry and your stop. Because it works in price rather than pips, the same calculation covers every instrument: a fifty-point stop on an index and a fifty-pip stop on a pair both resolve to a size that risks the same money. A tighter stop allows a larger position for the same risk, and a wider one demands a smaller position, which is exactly the trade-off you want the maths to make for you rather than making it by feel. Cross-check the result against your exposure cap with the risk calculator.
Tools
Position size calculator
Enter where you get in and where you are wrong. The size follows from the distance between them.
Position sizeLive
Position size—
Units—
Stop distance—
Amount at risk—
Position value—
Works on any instrument, because it measures the distance in price rather than in pips.
Let the trade decide the size
The stop belongs where the idea is proven wrong, not where the loss happens to feel comfortable. Once it is placed, the size is arithmetic: the wider the stop, the smaller the position, so the money at risk never changes. This is the same calculation whether you are trading a currency pair, an index or gold.
Stop distanceEntry minus stop, in price. The room the trade is given.
UnitsMoney at risk divided by the stop distance.
Position valueUnits × entry price. What the position is worth in full.
How it works
Why the distance is what matters
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