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Forex Position Sizing Reference Sheet

Lot size formulas · Pip value tables · 1% and 2% risk tables for $1K–$100K accounts

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The Core Formula

Lot Size = (Account Balance × Risk %) ÷ (Stop Loss in Pips × Pip Value per lot) Position Size (units) = Risk Amount ÷ (SL in pips × pip value per unit)

Example: $10,000 account, 1% risk, 20 pip SL, EURUSD (pip value = $10/lot standard)
→ Risk amount = $100 → Lot size = 100 ÷ (20 × 10) = 0.5 lots

For XAUUSD (Gold): pip value per standard lot ≈ $10/pip but tick size = $0.01. Use: Lot Size = Risk Amount ÷ (SL in points × $10). With 200 point SL and $100 risk: 100 ÷ (200 × 0.1) = 0.5 lots.

Standard Pip Values (USD account, per lot size)

PairStandard Lot (1.0)Mini Lot (0.1)Micro Lot (0.01)Notes
EURUSD$10.00/pip$1.00/pip$0.10/pipBase currency EUR — pip value in USD
GBPUSD$10.00/pip$1.00/pip$0.10/pip1 pip = 0.0001, 5th decimal on MT4/5
AUDUSD$10.00/pip$1.00/pip$0.10/pipFixed when USD is quote currency
NZDUSD$10.00/pip$1.00/pip$0.10/pipFixed when USD is quote currency
USDJPY~$9.10/pip~$0.91/pip~$0.09/pipVaries with USD/JPY rate. 1 pip = 0.01
USDCAD~$7.60/pip~$0.76/pip~$0.076/pipVaries with USD/CAD rate
USDCHF~$11.10/pip~$1.11/pip~$0.11/pipVaries with CHF/USD cross rate
GBPJPY~$9.10/pip~$0.91/pip~$0.09/pipCross pair — pip value in JPY, converted
EURJPY~$9.10/pip~$0.91/pip~$0.09/pipVaries — check broker's pip value tool
XAUUSD (Gold)$10.00/point$1.00/point$0.10/point1 point = $0.01 move. 100 points = ~$1 move

1% Risk Table — Max Dollar Loss at 1% Risk by Account Size

Account Size1% Risk ($)20 pip SL → Lots30 pip SL → Lots50 pip SL → Lots100 pip SL → Lots
$1,000$100.05 lots0.033 lots0.02 lots0.01 lots
$2,500$250.125 lots0.083 lots0.05 lots0.025 lots
$5,000$500.25 lots0.167 lots0.10 lots0.05 lots
$10,000$1000.50 lots0.33 lots0.20 lots0.10 lots
$25,000$2501.25 lots0.83 lots0.50 lots0.25 lots
$50,000$5002.50 lots1.67 lots1.00 lot0.50 lots
$100,000$1,0005.00 lots3.33 lots2.00 lots1.00 lot

Based on EURUSD/GBPUSD with $10/pip per standard lot. XAUUSD and JPY pairs: recalculate using actual pip values above.

2% Risk Table — Max Dollar Loss at 2% Risk by Account Size

Account Size2% Risk ($)20 pip SL → Lots30 pip SL → Lots50 pip SL → Lots100 pip SL → Lots
$1,000$200.10 lots0.067 lots0.04 lots0.02 lots
$2,500$500.25 lots0.167 lots0.10 lots0.05 lots
$5,000$1000.50 lots0.33 lots0.20 lots0.10 lots
$10,000$2001.00 lot0.67 lots0.40 lots0.20 lots
$25,000$5002.50 lots1.67 lots1.00 lot0.50 lots
$50,000$1,0005.00 lots3.33 lots2.00 lots1.00 lot
$100,000$2,00010.00 lots6.67 lots4.00 lots2.00 lots
⚠️ Prop firm accounts: most prop firms (FTMO, E8, TFT) recommend risking 0.5%–1% per trade during challenge phases to preserve daily loss limit headroom. A 5% daily loss limit with 2% risk per trade = you only need 2.5 losers to hit the limit. Risk 1% = 5 losers before the kill switch. More room, less pressure.

Position Sizing Rules — Quick Reference

ScenarioRecommended Risk %Reason
Live account, learning phase0.5%Learning is expensive — minimize cost of education
Live account, established strategy1%Industry standard. Survives 20 consecutive losses before 20% drawdown
Prop firm challenge0.5%–1%Preserves daily loss limit headroom for 5–10 bad trades
Prop firm funded account1%–2%Larger buffer with scale-up programs rewards consistent sizing
Backtesting (learning edge)N/A (track in pips)Pip results matter for testing edge — dollar amounts mislead during learning
High-conviction tradeMax 2%Never exceed 2% even with "certainty" — market doesn't care about conviction