Calculators
Lot Size Calculator
A "Lot" defines the trade size, or the number of currency units to be bought/sold in a trade. One Standard Lot is 100,000 units of the base currency.
Most brokers also allow trading with fractional lot sizes, down to 0.01, sometimes even less. Fractional lot sizes are categorized as mini lots (0.10), micro lots (0.01) and nano lots (0.001). Please refer to the image above to compare the lots and correspondent currency units.
How to use the Position Size and Risk Calculator
Instrument: Traders can select from major pairs, minors and exotics, several cryptocurrencies, such as BTC/USD, ETH/USD, LTCUSD, XLM/USD and XRP/USD, and a range of commodites, such as Gold, Silver and Oil. Let's choose, for our example, the USD/CAD pair.
Deposit currency: The account base currency is important to assess the ideal lot size, as it takes into consideration the pip value and the market rate of the selected cross. We choose USD as our deposit currency, for this example.
Stop-loss (pips): Traders should input the maximum number of pips willing to risk in a trade. For this example we will use 100 pips for our stop-loss.
Account balance: Pretty straight forward, traders just need to input the account equity. For our example, we will type 2000.
Risk: The crucial field of this Position Size and Risk Calculator! In this field traders can select from a risk percentage or any value in the account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of the account equity per trade. This money management rule allows traders to last longer in their trading careers, and eventually, also to recoup from previously losing trades. So, for our example, we will select 2% risk.
Now, we hit the "Calculate" button.
The results: The Position Size and Risk Calculator uses a market price live feed with the current interbank rate (in a 5-digit format) and it will display the selected currency pair price (in our example the USD/CAD price).
In this case, using a stop-loss of 100 pips and risking 2% of our account equity, the recommended lot size would be 0.05 lot.
Next, the calculator displays the amount of units that the 0.05 lot represent; 5,000 units, and finally the portion of the account equity at risk, or the value of the position, in our case, 40 USD.
Understanding Lot Sizes in Forex Made Simple
When trading in the Forex market, size is everything. That's where the Forex Lot Size Calculator is your best friend. Most new traders don't know how big or how small their trade should be. Trading the wrong size will either cause you to lose more money than you intend or miss out on decent profits. That's why it's extremely crucial to use a tool that informs you of the right lot size.
A lot in Forex is much like the number of units that you sell or buy. However, you do not need to estimate anymore. The Forex Lot Size Calculator lets you know the ideal trade size according to your account balance, risk level, and currency pair. It is a wise tool that assists traders, novice and veteran, to make improved choices.
At Ellipsys Financial Markets Analysis, we think trading should be simple for all. That's why we provide tools such as the lot size calculator that are simplified and easy to access. You don't have to be a mathematics wizard. Simply put in your figures, and the calculator does the work. With this tool, you have the ability to trade smarter, safer, and with greater control.
How the Forex Lot Size Calculator Helps You
Suppose you wish to make a trade but are unsure of its size. The Forex Lot Size Calculator will provide you with answers within seconds. You simply have to enter your account size, the percentage you wish to risk, and the distance to your stop-loss.
The calculator then indicates to you how large your trade needs to be. This tool is really useful because it takes the guesswork out. Guessing can be hazardous in Forex. With the calculator, you can better plan and prevent silly errors. It
also assists you with money management. Good money management is the key to being a long-term Forex winner.The calculator is quick, free, and simple to use. It can be used with any currency pair. And you can use it repeatedly. Whether you trade once a day or ten times a day, this tool keeps you in charge. It's one of the most intelligent tools you can have in your trading collection.
Grow Your Trading Confidence with Smart Tools
Most people are afraid when they begin Forex trading. That's natural. But with the proper tools, you can be more confident. The Forex Lot Size Calculator is one of those tools that puts you in control of trading without fear. You'll know your risks. You'll know your limits. And you'll know what to expect.
We at Ellipsys Financial Markets Analysis are concerned about making the traders feel comfortable. We understand that trading is huge. But with simple tools like the lot size calculator, it is easier to learn and develop. You don't necessarily have to trade large to win big—you simply have to trade wisely. And wise trading begins with knowing your lot size.
Start Trading Smart Today
Forex Trading is a game, but an intelligent game. And to succeed, you must obey the rules and employ the appropriate tools. Your own Forex Lot Size Calculator is your guide that teaches you how to play cautiously and intelligently. It's perfect for starters and even better for those who wish to expand their trading.
At Ellipsys Financial Markets Analysis, we are convinced that the proper knowledge and tools are everything. So don't guess your lot size anymore—use the calculator, trade smart, and achieve your financial objectives one intelligent trade at a time.