How do I calculate my position size?

Position size determines how much of your capital you risk per pip.

Formula: Position Size (lots) = (Risk Amount in USD) / (Stop Loss in pips x Pip Value per lot)

Example (EUR/USD):

• Account balance: $1,000
• Risk per trade: 1% = $10
• Stop loss: 20 pips
• Pip value for 1 standard lot (EUR/USD): $10 per pip

Position size = $10 / (20 x $10) = 0.05 lots

Pip values vary by instrument. For non-USD quote currencies or exotic pairs, the pip value changes with the exchange rate.

Quick method: Use the built-in position size calculator in MT5 under Tools > Trader's Calculator, or use the position size calculator on the Zuperior website.