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.
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.
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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Explore related calculators to sharpen your edge
Calculate net profit/loss for any currency pair trade in your account currency
Calculate the dollar value of a pip for any lot size and currency pair
Calculate required margin and leverage impact for forex positions
Convert between standard, mini, and micro lots for precise trading