Aron Groups Lot Size Calculator

- Set risk percentage: Enter the percentage of risk you are willing to take per trade (e.g., 1% or 2% of total capital) in the Risk Percentage field.

- Specify stop loss: Define the distance between the entry point and stop loss in pips and enter it in the Stop Loss (pips) field.

- Select trading symbol: Choose the instrument you want to trade from the Currency Pair field. For example, if you want to trade the EUR/USD pair, select EURUSD, or if you plan to trade gold (XAU), select XAUUSD.

- Press the calculate button: After entering all required values, click the Calculate button. The lot size calculator will show you the exact trade volume (Lot Size) and the amount of your account at risk.

By following these steps, you can ensure that every trade you place has an appropriate lot size with proper risk management.

How to Calculate Lot Size in Forex?

If you want to manually determine the appropriate lot size for each trade, you can use the following formula:

$\mathrm{Lot\; Size}=\frac{\text{Account Balance × Desired Risk per Trade}}{\text{Pip Value × Stop Loss}}$

In this formula:

• Desired risk per trade is usually 1% to 2% of the account balance;
• and Stop Loss is the exit point if the market moves against your trade, usually expressed in pips.

Based on this formula, to calculate the appropriate lot size, you first need to calculate the Pip Value for your trade. With the Pip Calculator, you can quickly determine the pip value for your chosen trade.

For example, suppose with an account balance of $10,000, you want to open a trade on EUR/USD. Assuming your desired risk is 2% ($200), your stop loss is 50 pips, and pip value for one standard lot of EUR/USD is $10, the lot size is:

$\mathrm{Lot\; Size}=\frac{0.02\times 10000\$}{50\times 10\$}=\frac{200}{500}=0.4$

For this trade, the proper lot size for risk management is 0.4 standard lots. This means you should trade 40,000 units of EUR/USD. In other words, your position size should not exceed 0.4 lots.

This calculation method ensures you always size your trades according to your capital and risk tolerance.

Types of Lots in Forex

In Forex, a lot is the standard unit for measuring trade volume. For example, one standard lot in currency pairs equals 100,000 units of the base currency. However, since some traders have large capital and seek bigger profits while others prefer smaller amounts with lower risk, smaller lot sizes have also been defined to allow participation with different levels of capital and risk tolerance.

Lots smaller than the standard lot are divided into three categories: Mini Lot (10,000 units), Micro Lot (1,000 units), and Nano Lot (100 units). For a better comparison, see the table below.