The ETHUSD position size calculator uses live market quotes, account equity, risk percentage, and stop loss to calculate the recommended lot size for your trades.
To get started, enter the currency pair (ETHUSD), account size, stop loss, account balance, and the percentage of your account balance or equity that you are willing to risk, then click on Calculate.
It would be an understatement to say that risk management is crucial for traders. The reality is that it is a key success factor for a traders in the forex market.
One of the most important factors in trading forex successfully is your risk management. Position sizing is very important to managing risk properly in order not to blow your account out of proportion on a single trade.
And this is achievable by using position size, money management calculator to help you control your maximum risk taken on every trade you take.
Important Tip: Proper position sizing and risk management is also often a key differentiator between amateurs and professionals in the world of trading.
To effectively use lot size calculator, you must understand that a lot refers to the magnitude of a trade, or the number of currency units that will be bought or sold. 1 Standard Lot = 100,000 base currency units.
One good thing is most Forex brokers will let you trade fractional lot sizes (mini, micro, and nano lots). To compare the sizes and units, please see the figure above.
To calculate the perfect lot size for your trade, these are the steps with example:
Instrument:  You can select from a wide range of forex pairs (EUR/USD, GBP/USD, XAU/USD) and popular cryptos against USD (BTC/USD, ETH/USD, SOL/USD). Using the free position size calculator above, select GBP/USD as example.
Deposit currency:Â The account base currency is crucial in determining the right lot size since this factor in the pip value and market rate of the chosen pair. For this example, we’ll use USD as our deposit currency.
Stop loss (pips):Â Here, figure out the number of pips you are willing to risk (or lose) in a trade. This is very important in order to protect your account equity if the market moves against your entry position. We’ll use 20 pips as stop loss in this case.
Account balance:Â This is very clear, enter your account equity. Going by our example, let’s input 1000 into the postion size calculator.
Risk: The field is very important to your trading. In this field, you can switch from risk percentage % (1%, 2%) or amount of your account balance ($10, $20, $50, etc). In this case, we are willing to risk 2% of our account equity here.
Calculate:Â Now, hot the “Calculate” button.
THE RESULTS:Â
In this case, using a stop loss of 20 pips and risking 1% of our account capital (which is $1,000), the recommended lot size would be 0.1 lot.
NEXT: From the result, the calculator displays 0.1 Lots (trade size) which represent 10,000 Units (trade size) and finally the money at risk is also displayed which means if we decide to take the trade, the money risk here is -$20 if trade goes against us.
1:Â Â It is highly recommended not to risk more than 2% of your capital or account equity per trade. Following this rule increases your chances of success in your trading endeavors, as well as your ability to recover from earlier losses.
2:Â Your risk to reward must at least 1:2. Meaning you should only be interested in positions that can give you an opportunity to make at least twice of what you are willing to risk. Sticking to this trading ensures you take quality trades.
Calculating your position size rightly is a key aspect of your Forex money management. The video explains how to calculate perfect lot sizes for maximum profit and minimum risk on your trades.
Also Check:Â Gold Lot Size Calculator XAUUSD
Common questions people asked with answers about Forex, position size and risk management. See them below.Â
This is one of most valuable tools that enables FX traders to calculate the precise position size for any trade, allowing you to always stay in control of your risk and avoid blowing out your account on a single trade.
Divide the account risk by the trade size to find the appropriate position size per trade. This means USD 2000/USD 20 = 100 in our Microsoft example. To put it another way, you can buy 100 Microsoft shares based on your account value and stop-loss level to ensure you don’t lose more than 2% of your total money.
A lot is a standard contract size in the currency market. This is equal to 100,000 units of a base currency, therefore 0.01 lots represent 1,000 units of your base money.
To calculate your portfolio size, divide the dollar value of a security by the total dollar value of the portfolio to get the weight of an individual asset. Alternatibely, you can also divide the number of units of a particular securities by the total number of shares in the portfolio.
The number of lots, type and the size of lot you buy or sell determine the size of your position:
– A micro lot is 1,000 units of a currency.
– A mini lot is 10,000 units.
– A standard lot is 100,000 units.
Actually, you can trade any feasible trading plan with a $100 account because most brokers let you to trade in micro units or 0.01 lots. You can possibly increase the size of your trading units after you’ve optimized your trading plan and expanded your working capital through productive trading.
Micro lots can be too risky for a $50 account, so I propose you open a nano (cent) account. 1 standard lot equals 1 micro lot in a nano (cent) account, allowing you to trade safely even with $1.
A micro lot is one thousand units of a base currency equal to one percent of a regular lot (100 000 x 0.01). As a result, you will trade 1 micro lot when you open a trade with a 0.01 lot. Micro lots are the smallest tradable lot offered by most brokers and are an excellent place to start for newcomers.
If your account is financed in dollars, a micro lot equals $1,000 worth of the base currency you want to trade. One pip is equal to ten cents if you’re trading a dollar-based pair. 2 Micro lots are ideal for beginners who wish to minimize their risk to a bare minimum while learning to trade.
500:1 leverage means you can open a position worth 500 times your capital. That could be advantageous, or it could wipe away your money if the price swings against you by 0.2 percent. There’s no reason to utilize so much power.
A standard lot is 100,000 units of any currency, whereas a mini-lot is 10,000 and a micro-lot is 1,000 units of any currency. A one-pip movement for a normal lot equals a $10 change.
When in doubt, don’t exceed 2% of your account balance. I prefer between 1% and 2% risk to ensure that I can keep my emotions in check.
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