Calculate Your Position Size Position sizing is a way to calculate your position size, depending on the amount of risk you accept to take. Or, in other words, you decide on the risk, and you adjust the size of the position in accordance with that risk. Calculations: The Amount At Risk is calculated, using the following formula: Amount At Risk = Account Balance * Balance Risk The Position Size Crypto calculator computes the Amount at risk in the currency of your account, as well as the Position size, in cryptocurrency coins and in the account currency. The calculation of the crypto position size is based on the method of risking a certain percentage of the account. To calculate the results, the following parameters are required: Calculations: The money you risk with this position is calculated through this formula: This calculator computes the position size parameters for a position in the stock market.Available for Forex, Crypto and Shares Markets
Forex Position Size Calculator
The Position Size of the trade is represented by the Amount at risk and the Position volume. The first is the money you could lose should the market turn against you, and the second is the size of the position, expressed in lots or in units. With forex risk calculator you will quickly find the result.
There are two ways to calculate it. One is to have a fixed amount that you will risk with every trade, the other is to choose a percentage of your account balance. The second option is more flexible, because it automatically increases the trading amount for your next position when you are winning, and respectively decreases it, if you are losing.
To calculate the position size, let’s input some data for it.
✓ Account Balance – 10 000.00 (this is the amount you have in your trading account);
✓ Account Type – Mini Lot – 10 000 units (the contract size, or the size of the lots you trade with your account);
✓ Account Base Currency – USD (your account currency);
✓ Currency Pair – EUR/GBP (the forex pair you want to trade);
✓ Exchange Rate GBP/USD – 1.38900 (the calculator will need you to input an additional exchange rate, depending on your Account Base Currency and the Currency Pair. If the account currency and the quoted (second) currency in the pair are the same, just ignore the field or type in “1”);
✓ Balance Risk – 2 % (the percentage of your account you are willing to risk);
✓ Entry Price – 0.86500 (the desired entry level for your EUR/GBP position);
✓ Stop Loss Price – 0.87200 (the stop-loss level for the position).
You also need to know the pip value of the lot size. It is easily calculated using the second (quoted) currency in the pair. In this example, that currency is GBP.
✓ For standard lot (100 000 units) – 1 pip is worth 10 GBP;
✓ For mini lot (10 000 units) – 1 pip is worth 1 GBP;
✓ For micro lot (1 000 units) – 1 pip is worth 0.10 GBP.
or
10 000 * 2% = 200 USD at risk, which means that at most, you could lose $200 in case the market hits your stop-loss order.
The Position Size in Lots is calculated in 2 steps:
1) Trade Risk = Entry Price – Stop Loss Price (for a long position) and Trade Risk = Stop Loss Price – Entry Price (for a short position)
Or in this example:
0.87200 – 0.86500 = 70 pips at risk.
2) Position Size = Amount At Risk / (Trade risk * Pip value for lot * Exchange Rate)
or
200 / (70 * 1 * 1.38900) = 2.056978 mini lots. The position should be 2.06 mini lots.
The calculator also computes the position size in units:
Position Size (in units) = Position Size in lots * units for lot
or
2.056978 * 10 000 = 20 569.78 units.
Crypto Position Size Calculator
✓ Account Balance – 10 000.00 (this is the amount you have in your trading account);
✓ Balance Risk (%) – 1 (the percent of the account balance that you accept to risk);
✓ Entry (Coin) Price – 6 000 (the level that you want to enter the market);
✓ Stop Loss Price – 4 000 (the protective level, should the market moves against you).
Amount At Risk = Account Balance * Balance Risk
or
10 000 * 1 % = 100 units of your account currency.
The Position size is the number of crypto coins that this position will hold:
For long positions: Position Size (# of Coins) = Amount at Risk / (Entry Coin Price – Stop Loss Price)
And for short positions: Position Size (# of Coins) = Amount at Risk / (Stop Loss Price – Entry Coin Price)
In this example, this is:
100 / (6 000 – 4 000) = 0.05 crypto coins.
The Position Value expresses how much the position is worth in your account currency.
Position Value = Entry Coin Price * Position size
or
6 000 * 0.05 = 300 units of your account currency.Shares Position Size Calculator
The shares position size is based on risking a certain percentage of the account. To make the calculations with the position size calculator forex, the following parameters are required:
✓ Account Balance – 10 000.00 (this is the amount you have in your trading account);
✓ Account Base Currency – EUR (your account currency);
✓ Share (Index) Margin Currency – USD (the currency in which the asset is quoted);
✓ Exchange Rate USD/EUR – 0.83000 (the calculator will need you to input an additional exchange rate, depending on your Account Base Currency and the Share Margin Currency. If the two are the same, just ignore the field or type in “1”);
✓ Balance Risk % – 1 (the percentage of your account you are willing to risk);
✓ Entry (Share) Price – 100.00 (the desired entry level for your shares position in the margin currency);
✓ Stop Loss Price – 90.00 (the stop-loss level for the position in the margin currency).
Calculations:
The money you risk with this position is calculated through this formula:
Amount at Risk = Account Balance * Balance Risk
In this example this is:
10 000 * 1 % = 100 EUR
So, you could lose 100 EUR if the market hits your stop loss.
The Position Size (# of Shares) is the number of shares that this position will hold.
For long positions the calculation is:
Position Size (number of Shares) = Amount at Risk / {(Entry Share Price - Stop Loss Price) * Exchange Rate}
And for short positions:
Position Size (number of Shares) = Amount at Risk / {(Stop Loss Price - Entry Share Price) * Exchange Rate}
In our example, we have:
100 / {(100 - 90) * 0.83000} = 12 shares
The Position Value expresses how much the position is worth in the Share Margin currency:
Position Value = Entry Shares Price * Position Size
or
100 * 12 = 1 200 USD total for the position
Risk per Share (%) is the ratio between the risk and the entry price, or it shows how much the risk is compared to the entry shares price.
For long positions: Risk Per Share (%) = (Entry Share Price - Stop Loss Price) * 100 / Entry Share Price
For short positions: Risk Per Share (%) = (Stop Loss Price - Entry Share Price) * 100 / Entry Share Price
For our example:
(100 - 90) * 100 / 100 = 10 % Risk per Share
Or, for every share in the position you risk 10 % of its price.
€ 13.99
keywords: We hope you enjoy our forex lot size calculator.