WhitmanTrading

Lot Size Calculator

Lot size is what your risk and your stop distance allow, not what you choose. Divide the money you will risk by your stop distance in pips times the pip value, and the answer is the size. Available leverage is a broker's ceiling, not an input.

Lots your risk allows

Defaults are a 10,000 account risking 1% with a 40-pip stop on a pair worth 10 per pip.

Lots to trade 0.25
Money at risk 100.00
Units 25000
Value of one pip at that size 2.50

Lots = risk ÷ (stop in pips × pip value). Round the answer DOWN, never up — rounding up is a decision to exceed the risk you set.

Runs entirely in your browser. Nothing you type is sent anywhere or stored.

How the number is built

Price bars with a position size derived from a planned risk.
How many units your risk actually allows. Illustrative chart - not real market data.

Three numbers you decide, and one that falls out. The size is the one that falls out.

Lots = (account × risk %) ÷ (stop in pips × pip value)

A candlestick chart with a fixed risk amount marked.
It starts from what you will lose, not what you want. Illustrative chart - not real market data.

The numerator is a decision made before the chart is open. One percent of the account, or half a percent, or whatever figure you can take twenty times in a row without changing how you behave.

A candlestick chart of the site's shared price history.
The stop distance is the other half of the arithmetic. Illustrative chart - not real market data.

The denominator comes from the chart. Where the idea is wrong, measured in pips, times what a pip is worth at a standard lot.

A worked example

Take the defaults: a 10,000 account, 1% risk, a 40-pip stop, 10 per pip.

The money at risk is 10,000 × 0.01 = 100.

The loss at the stop, per standard lot, is 40 × 10 = 400.

So the size is 100 ÷ 400 = 0.25 lots — 25,000 units, and one pip moves the position by 2.50.

The first half of the price series showing pip value scaling.
In forex the pip value turns that distance into money. Illustrative chart - not real market data.

Now widen the stop to 80 pips and nothing else changes. The size halves to 0.125 lots. The risk is still 100. That is the arithmetic doing the protecting — you do not have to decide to be careful, because a wider stop mechanically produces a smaller position.

The second half of the price series with a rounded position size.
And the answer is a size, which you round down. Illustrative chart - not real market data.

Round down, always

The answer will rarely be a round number. 0.25 lots is convenient; 0.37 is not, and a broker with 0.01 granularity will let you take 0.37.

Round down to 0.37 rather than up to 0.38, and to 0.3 if your broker only does mini lots. Rounding up is a decision to carry more risk than you set, made silently and usually for tidiness.

On a small account the answer can come out below the minimum size. The honest reading of that is that the trade does not fit the account — not that the risk should rise or the stop should tighten. Tightening the stop to fit a size is the inversion this entire page argues against.

Leverage is not an input

A long-horizon candlestick view of amplified exposure.
Available leverage is a ceiling, not a recommendation. Illustrative chart - not real market data.

Notice what is absent from the formula: leverage. It does not appear, because it is not a factor in how large a position should be. It is a limit on how large a position can be.

On this site’s shared series the effect of using it is measured. Unleveraged the series returned 3.61% with a worst drawdown of 3.76%. At 3x it returned 8.93% — short of the naive 10.83% — while the drawdown went to 11.08%. The loss scaled almost exactly with the multiple and the return did not.

Which is why a size chosen from available leverage is a size chosen by the broker. The figures are in research/series-measurements.json.

What sits on top

A candlestick chart annotated with the round-trip cost.
Every trip costs 2% of a bar on top. Illustrative chart - not real market data.

The spread is paid on entry regardless. A two-pip spread against a 40-pip stop is 5% of the risk gone before the position has moved, and it scales with the size the calculator returns.

A candlestick chart with a volume histogram beneath it.
And a large size in a thin market is its own problem. Illustrative chart - not real market data.

And a size that is correct arithmetically can still be wrong practically. In a thin instrument or a dead session, a position the formula permits may be more than the book can absorb at the price you expect.

The original data

Of the 24,971 unique videos in research/search-study-corpus.jsonl, 14 have an instruction-shaped title mentioning lot size, at a median of 127,651 views across 13 channels — and 50% of those titles use explicitly calculator-shaped language. That is the highest share of calculator intent measured anywhere in the corpus. Position sizing appears in 195 titles at a median of 1,738. The counts come from site/rank_tools2.py.

A candlestick series with several gaps, the largest marked.
A gap means the planned loss was never the real one. Illustrative chart - not real market data.

Half of the lot-size searches are people asking for a calculator, at a 127,651 median — against 195 position-sizing videos at 1,738. The same arithmetic, named two ways, with a seventy-fold difference in audience. People are not searching for the concept; they are searching for the number.

Price bars cut short at a sizing decision.
The stop is far away. Tighten it to trade bigger? Illustrative chart - not real market data.

The answer to the question on that chart is no, and it is the single most common way this calculation gets subverted. A stop belongs where the idea is wrong, and moving it to permit a larger position moves it to where the idea is still right — so the position is now sized correctly against a stop that will be hit by ordinary movement. The formula is intact and the input was corrupted.

When it fails

A sideways, range-bound candlestick series.
Sizing from the account instead of the stop fails here. Illustrative chart - not real market data.

A range is where a size chosen from the account rather than the stop does the most damage. Price oscillates, stops set inside ordinary movement are touched repeatedly, and a position sized without reference to that distance loses the same amount every time rather than a scaled amount. Nothing dramatic happens — the account is ground down by a series of trades that were each the wrong size for the conditions, and the sizing rule was never actually applied.

The second failure is a gap through the stop. The planned loss was never the real one, and no sizing formula prevents that — only a smaller size does.

A third is rounding up. It is a silent decision to exceed the risk you set.

A fourth is the wrong pip value. On a yen pair the pip is 0.01, not 0.0001, and the answer is wrong by a factor of a hundred.

A fifth is forgetting the spread. It is part of what the attempt costs and it is paid on entry.

And a sixth is taking the minimum size when the answer came out below it. That is the trade not fitting the account, and the account is the thing that has to be respected.

Lot size covers the unit itself and the standard, mini and micro conventions. Position sizing is the same arithmetic in every other market. And forex is where the pip value in the denominator comes from.

What I actually do

The order of operations is the whole thing, and it is the one people invert. Decide the risk, find where the idea is wrong, measure the distance, then let the size be whatever those three produce. Choosing a size first and then hunting for a stop that fits it is how a reasonable trade becomes an unreasonable one without anybody deciding to make it so.

— Michael Whitman

This page is educational, not financial advice. Test every idea on your own charts before risking money.