Lot Size Calculator
CALCULATING POSITION SIZE
Determining the right lot size before making a trade is essential. It depends on factors like your account balance, how much risk you’re comfortable with, and your trading plan.
One popular way to figure out the size is by using the “percent risk” method. First, decide what percentage of your account you’re willing to risk on one trade. Then, based on this percentage, you can calculate the lot size that matches your preferred level of risk.
To make this calculation easier, you can use this Position Size Calculator. This handy tool helps you find the perfect lot size for your trades.
What Is A Lot in Forex Trading?
In forex, a ‘Lot’ just tells you how much of a currency you’re buying or selling.
- Standard Lot: It’s like buying or selling 100,000 units of a currency.
- Mini Lot: This is like buying or selling 10,000 units.
- Micro Lot: It’s even smaller, like buying or selling 1,000 units.
- Nano Lot: This is the smallest, like buying or selling 100 units.
So, if you see someone talking about trading ‘lots’ in forex, they’re just talking about how much of a currency they’re dealing with in one go.