Master Your Risk Sizing
The secret to long-term profitability isn't entry price — it's position sizing. Calculate exactly how many lots to trade based on your risk tolerance.
The 1% Risk Rule
Most professional Forex traders never risk more than 1% to 2% of their total account balance on a single trade. This is known as the "1% Rule."
By using this strategy, you would need to lose 100 trades in a row to blow your account — an event that is statistically almost impossible if you have a proven edge.
How it works
If you have a $10,000 account and risk 1%, you are risking $100. If your Stop Loss is 20 pips away, your position size is calculated such that those 20 pips equal exactly $100.
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This calculator is part of our professional suite of Forex currency calculators. Explore the fullForex Trading Toolkitto optimize your strategy and manage risk like a professional.
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More Forex Tools
Explore related calculators to sharpen your edge
Forex Profit & Loss
Calculate net profit/loss for any currency pair trade in your account currency
Forex Pip Value
Calculate the dollar value of a pip for any lot size and currency pair
Forex Margin Tool
Calculate required margin and leverage impact for forex positions
Forex Lot Size Converter
Convert between standard, mini, and micro lots for precise trading