Position Size Calculator

Discussion in 'Risk Management' started by Coner1980, Oct 1, 2021.

  1. This Forex calculator provides you with a position size in standard lots based on the variables that you enter. The account currency field will correspond to the currency which you use in your trading account. So if you are based in the U.S., this will likely be USD, whereas if you reside in the UK, you would choose GBP. This position size calculator is a free tool that allows you to calculate the size of the position in units and lots. This will be very helpful to manage your risks more wisely as you will be more informed. This position size calculator works with all major currencies. It requires the minimum input values, but allows you to customise it according to your specific needs. All you have to do is complete the form below and then press the Calculate button.

    Raheel Shaikh likes this.
  2. deaddog


    How about for stocks? How are you coming up with a position size for your portfolio?

    I use the percentage of my portfolio that I'm willing to risk. I take the difference between my entry and my stop and divide that into the percentage of my portfolio I'm willing to risk to come up with the number of shares I will buy.

    If my account size is 25k and I'm willing to risk 1% then the amount of risk is $250.

    If my entry price is $25 and my stop is 23.60 then my risk is $1.40

    $250/$1.40 = 178.57 which I would round down to 170 or even 150 shares to allow for a little slippage.

    Using this method you end up with a portfolio of 6 or 7 stocks. If you feel that this is not enough diversification reduce the percentage risk.