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The Amount at Risk show the dollar amount risked.

Position Size is the actual number of units you’re trading of a particular currency.

The Standard Lots, Mini Lots and Micro Lots are the values you will need to enter into your trading platform.

What you use depends on your account size.

If you are trading a standard account, then you will use the standard lot size. Similarly, if you are trading a mini account, you use the mini standard lot.

In case you are trading a micro account, then you will use a micro lot size.

What do you need to determine Position Size for Trade using the position size calculator.

1. Your account currency:

This can be any currency depending on what  you used to open your account with your broker to trade Forex.

Your account can be in U.S dollars, Euros, GBP or any other currency as long as it is accepted by your broker.

2. Account balance:  

This represents the amount of money you have on your account.

Here, you will enter your account size in terms of the account currency denomination. So if you are trading with $10,000, enter 10,000 as your account balance.

3. Your account Risk per Trade:

This is the most important step for determining Forex position size.

You must know how much money you are willing to risk per trade before thinking about the position size.

Set a percentage of how much you want to risk from your account on each trade. Most professional traders risk 2% or less of their account.

For example, with a $10,000 trading account, you can risk $100 per trade for every 1% risk on the trade.  Or $50 for every 0.5%risk per trade.

If you choose 2%, you risk $200

The other variables of a trade may change but the account risk per trade should be kept constant.

Choose how much you’re willing to risk on every trade, and then stick to it.

Don’t risk 5% on one trade, 1% on the next, and then 10% on another.

If you choose 1% as your account risk limit per trade, then every trade you should risk 1%.

 4. Determine the stop loss in pips:

For proper risk management, your position size should fit your stop loss.

To determine stop loss in pips, measure the distance between the entry point and where you place your stop loss order.

Your stop loss will closes out the trade if it goes the opposite direction.

Stop loss in pips can vary on different trades you take depending on the market volatility conditions.

When the market is highly volatile, price makes very large movements.  It’s advisable to always set your stop loss far from the entry level.

However, when the market is slow with low volatility, you can set your stop loss closer to the entry point.

Always aim at setting stop loss not too far from entry to avoid large losses or too close to entry to safocate your trades.

Once you know how far away your entry point is from your stop loss in pips, you can calculate your ideal position size for that trade.

 5. The currency pair you are to trade

Next, select the currency pair you want to trade.

The position size calculator also requires you to fill in the currency pair you want to trade.

For example, it can be USD/CHF, EUR/JPY, USD/CAD, CHF/JPY or any other pair on the platform.

Finally, when you are sure you have put correct values, hit the calculate button. You will have the position size on the calculator.