RESOURCE · PRINTABLE CHEAT SHEET
Forex position size cheat sheet
The formula, the pip values, and the lot sizes worked out for you — so risk is a decision you make before the trade, not a number you discover after it.
By FirstPip editorial team · Updated 2026-09-14 · Educational content · No broker owns this site
Quick answer. Position size = risk amount ÷ (stop distance in pips × pip value per lot). Decide your risk first (0.5–1% of the account for beginners), place the stop where the trade is wrong, then size the lot so that distance costs exactly that amount.
How do you calculate forex position size?
Three inputs decide your lot size, in this order. Get the order wrong and the number is meaningless.
- Risk amount — how much money you accept to lose if this trade hits its stop. Set it as a percentage of the account (see below), not as a lot size.
- Stop distance — the number of pips from your entry to the price that says the trade idea is wrong. The stop belongs to the chart, never to a lot size you picked first.
- Pip value per lot — how much one pip is worth for the size you trade. On a pair quoted in US dollars, one standard lot is worth $10 per pip.
Then divide:
Lots = Risk amount ÷ (Stop distance in pips × Pip value per lot)
What should your risk per trade be?
Most beginner guidance sits at 0.5–1% of the account per trade; one teaching source works in percentages and uses 1% as its standard unit. The reason 1% is the ceiling and not a target: at 1% it takes 100 losing trades in a row to blow up the account, which effectively never happens — ten in a row does not do it either. Three losses in a row costs just 3%, small enough that a single winner recovers it.
Two extra rules from the same source shape the number before you reach for the formula. First, cut the size, not the stop, when the stop has to be tight: entering on a very small timeframe with a close stop is a reason to take half size, because that trade needs supervision you may not give it. Second, the stop has to sit on the structure of the timeframe you actually entered on — an old, unrelated support or resistance level is an arbitrary distance dressed up as analysis.
What is your risk in dollars? (0.5% / 1% / 2%)
Risk amount is simply the account multiplied by the risk percentage. This is the numerator in the formula above.
| Account | 0.5% risk | 1% risk | 2% risk |
|---|---|---|---|
| $500 | $2.5 | $5 | $10 |
| $1,000 | $5 | $10 | $20 |
| $2,000 | $10 | $20 | $40 |
| $5,000 | $25 | $50 | $100 |
| $10,000 | $50 | $100 | $200 |
2% is included because you will see it quoted widely. On a new account it is the top of the sensible range, not a default — it doubles the size of every losing streak.
What is a pip worth for the formula?
The round numbers below apply when the US dollar is the quote currency — the currency on the right of the slash, as in EUR/USD, GBP/USD or AUD/USD. That is the one case worth memorising, and it is the case every table further up this page uses.
| Lot size | Units | Pip value (USD-quote pair) |
|---|---|---|
| Micro — 0.01 | 1,000 | $0.10 per pip |
| Mini — 0.10 | 10,000 | $1.00 per pip |
| Standard — 1.00 | 100,000 | $10.00 per pip |
When the dollar is not the quote currency, the pip value is not a round number — and the gap is not small. On one set of central-bank reference rates a standard lot ran from about $5.82 to $13.51 a pip, against the $10 rule of thumb. Sizing every pair as if a pip were worth $10 therefore over-risks some positions and under-risks others by a wide margin, so for anything off the memorised rule, work it out, read it off your platform's contract specification, or use the position size calculator — do not guess.
What is a pip worth on non-dollar pairs?
Pip value tracks the quote currency and the lot size, not the base currency. That is why USD/JPY, EUR/JPY and GBP/JPY — three pairs that share a quote currency and a pip size — all land on the same figure. The dollar amounts below are two-step arithmetic (one pip in the quote currency, then converted at the exchange rate) worked out here on top of the European Central Bank's euro reference rates for 11 September 2026; the pip sizes are the usual market convention, not the ECB's, and the figures assume a US-dollar account.
| Pair | Standard lot | Mini | Micro |
|---|---|---|---|
| EUR/USD | $10.00 | $1.00 | $0.10 |
| USD/CAD | $7.22 | $0.72 | $0.07 |
| EUR/GBP | $13.51 | $1.35 | $0.14 |
| AUD/NZD | $5.82 | $0.58 | $0.06 |
| USD/JPY | $6.49 | $0.65 | $0.06 |
| EUR/JPY | $6.49 | $0.65 | $0.06 |
| GBP/JPY | $6.49 | $0.65 | $0.06 |
These are reference rates, not dealable prices: the ECB says the rates are "published for information purposes only" and that "using the rates for transaction purposes is strongly discouraged". Your own pip value settles at your broker's rate the moment you close, and every figure here belongs to 11 September 2026 — a pip value without a date is incomplete. The rates rest on one source; no second central bank published a table for that date to cross-check against.
What lot size should you trade? (1% risk)
The table below does the division for you at 1% risk on a USD-quote pair. Find your stop distance down the side and your account across the top.
| Stop | $1,000 | $2,000 | $5,000 | $10,000 |
|---|---|---|---|---|
| 10 pips | 0.10 | 0.20 | 0.50 | 1.00 |
| 20 pips | 0.05 | 0.10 | 0.25 | 0.50 |
| 25 pips | 0.04 | 0.08 | 0.20 | 0.40 |
| 50 pips | 0.02 | 0.04 | 0.10 | 0.20 |
Always round down. Your broker only trades whole increments (usually 0.01 lots). Rounding up pushes you over your risk limit; rounding down keeps you under it. Under is the whole point.
Can you walk through one example?
Account $2,000, a USD-quote pair, stop 20 pips away. Same trade, three risk settings:
0.5% risk → risk $10 → 10 ÷ (20 × $10) = 0.05 lots (5 micro lots). If the stop hits, you lose $10.
1% risk → risk $20 → 20 ÷ (20 × $10) = 0.10 lots (1 mini lot). If the stop hits, you lose $20.
2% risk → risk $40 → 40 ÷ (20 × $10) = 0.20 lots (2 mini lots). If the stop hits, you lose $40.
Why is each rule on this sheet here?
Every line on this page exists to remove one specific way accounts die. Sizing from the risk amount instead of picking a lot first is what stops a "normal-looking" trade from quietly carrying an abnormal loss. The 1% ceiling turns a losing streak from a threat into an inconvenience. Cutting size on a tight stop stops you mistaking a close stop for a licence to trade bigger. Rounding down keeps the arithmetic honest at the moment it is easiest to fudge. None of this is analysis — it is a set of limits on your own behaviour, written down in advance, when nothing is at stake. That is exactly why it works.
Pair this sheet with the pre-trade checklist and the trading plan template, and read the deeper explanation of the risk unit in risk per trade. If you are still choosing a broker, the leverage limits by region card shows how much leverage each regulator allows.
Frequently asked questions
What is the forex position size formula?
Lots = risk amount ÷ (stop distance in pips × pip value per lot). The risk amount is your account multiplied by the risk percentage you chose in advance.
How much should I risk per trade as a beginner?
Most beginner guidance is 0.5–1% of the account per trade. At 1% it would take 100 losses in a row to blow up the account, and three losses in a row costs only 3%.
What is one pip worth per lot?
On a pair quoted in US dollars, a micro lot (0.01) is worth $0.10 per pip, a mini lot (0.10) is $1 per pip, and a standard lot (1.00) is $10 per pip.
Should I round my lot size up or down?
Always round down to your broker's smallest increment. Rounding up pushes you over your risk limit; rounding down keeps you safely under it.
Does a tighter stop mean I can trade a bigger position?
No. A tight stop on a small timeframe is a reason to take half size, because that trade needs close supervision. Size follows the risk amount, not the stop width.
Is a pip always worth $10?
No. That holds only for a standard lot on a pair quoted in US dollars. Change the lot size, or trade a pair quoted in another currency, and the value changes: on central-bank reference rates for 11 September 2026 a standard lot ranged from about $5.82 (AUD/NZD) to $13.51 (EUR/GBP) a pip.
What is the pip value on a pair like GBP/JPY?
Pip value follows the quote currency, so USD/JPY, EUR/JPY and GBP/JPY share the same figure — about $6.49 a pip on a standard lot on the 11 September 2026 reference rates. Because the rate moves, work it out or use a calculator rather than reusing an old number.
Keep going
Sources
- FirstPip knowledge base — Risk per trade (S001, S002)
- FirstPip knowledge base — Foundational trading rules (S002)
- BabyPips — Position Size Calculator (cùng công thức: risk ÷ (stop pips × pip value))
- FirstPip knowledge base — Pip value: quote-currency rule & worked table (S006/S010/S039; rates: ECB euro reference rates, 11 Sep 2026)