ZAforexLot size (position size) calculator
How position sizing works
The formula is: Lot size = (Account balance × Risk %) ÷ (Stop-loss in pips × Pip value per lot).
Example: a R20,000 account risking 1% (R200) with a 25-pip stop on EUR/USD. With USD/ZAR at about 18, one pip on a standard lot is about R180, so the position is R200 ÷ (25 × R180) ≈ 0.04 lots.
Standard, mini, micro and nano lots
| Lot | Size | Units of base currency |
|---|---|---|
| Standard | 1.00 | 100,000 |
| Mini | 0.10 | 10,000 |
| Micro | 0.01 | 1,000 |
| Nano (some brokers) | 0.001 | 100 |
How much should I risk per trade?
Most risk-management rules of thumb say 0.5% to 2% of the account per trade. At 1%, ten losing trades in a row cost about 10% of your account, which you can recover from. At 10% per trade, the same streak would wipe out two-thirds of it. Read more in forex strategies and risk management.
Frequently asked questions
What lot size should I use with R1,000?
Usually the smallest your broker allows (0.01 lots or less). At 1% risk, R10 per trade with a 20-pip stop on EUR/USD is well under 0.01 lots, so many traders use cent or nano accounts at that size.
What is the difference between lot size and position size?
They mean the same thing: how large your trade is, expressed in lots or units.