How many lots to trade so a stop-out costs only your planned risk.
A $10,000 account risking 1% with a 20-pip stop on EUR/USD should trade 0.500 standard lots (50,000 units). The math: $10,000 × 1% = $100 of risk, divided by ($10 pip value × 20 pips) = 0.5 lots. Halve the risk percentage or double the stop distance and the position size halves with it.
Risk-based sizing keeps a single losing trade from blowing up your account. The formula:
lots = (balance × risk%) ÷ (pip_value_per_lot × stop_pips)
Pip value depends on the quote currency of the pair and your account currency. For EURUSD with a USD account, one pip per standard lot is exactly $10. For EURJPY with a USD account, one pip is 1,000 JPY per lot — converted to USD using the current JPY→USD rate.
This calculator pulls daily FX rates from the European Central Bank via frankfurter.dev. For intraday accuracy on volatile crosses, treat results as a tight estimate, not a tick-precise quote.
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