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Position size calculator
The single most useful risk tool for a trader: decide how much of the account you are willing to lose on one trade, measure the stop distance, and let the arithmetic tell you the position size.
Position size (lots)
Position size (lots): 0.40 · Cash at risk: 100
The formula
Position size (lots) = (account balance x risk %) / (stop distance x value of one pip or point per lot). With a 10,000 USD account, 1% risk, a 25-pip stop on EUR/USD and a pip value of 10 USD per standard lot, the size is 100 / (25 x 10) = 0.40 lots.
For gold, most brokers quote XAU/USD with 100 ounces per standard lot, so a 1 USD move equals 100 USD per lot and 0.01 USD (one point) equals 1 USD per lot. A 5 USD stop on 0.20 lots therefore risks 100 USD. Contract sizes differ between brokers and account types, so confirm the value on your platform.
Why a fixed percentage
Risking the same small percentage on every trade keeps losing streaks survivable. Ten losses in a row at 1% leave about 90% of the account; at 5% they leave about 60%, and recovering from a 40% drawdown needs a 67% gain. Most professional guidelines sit between 0.5% and 2% per trade.
Fixed-percentage sizing also adapts automatically: when volatility is high and the stop is wide, the position shrinks; when the stop is tight, it grows, while the cash at risk stays the same.
Common mistakes
Moving the stop further away after entry increases the risk you calculated. Forgetting the spread and commission understates the real loss on a stop-out. Opening several correlated positions, such as long gold and long silver, multiplies risk even if each trade is sized correctly. Leverage only decides how much margin is needed; it does not change the risk of a correctly sized position.
About the data
Prices come from public sources (Yahoo Finance, gold-api.com) and the calendar from the ForexFactory public feed. The page is rebuilt every three hours; figures can lag the live market, so always confirm prices on your own platform before acting.
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Frequently asked questions
What risk percentage should I use?
Many traders use 0.5% to 1% per trade. The right number is the one that lets you sit through a long losing streak without changing your method.
What is the pip value of XAU/USD?
With a 100-ounce contract, 0.01 USD is worth 1 USD per standard lot and 1 USD is worth 100 USD. Check your broker's contract specification.
Does leverage change position size?
No. Leverage changes the margin required. Position size comes from the risk amount and the stop distance.
Trading leveraged products such as CFDs, futures and crypto derivatives carries a high risk of losing money. This page is information and education, not investment advice.