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Risk Management in Trading: Setting Stop-Loss and Position Size?
Learn risk management in trading this February! Discover how to set stop-loss orders and position sizing for smarter trades.
Risk calculator
What a stop loss would cost if it were hit, in money and as a share of your account.
Result
Loss if the stop is hit
500.00USD
5.00% of a 10,000.00 USD balance.
- One pip on this position
- 10.00 USD
- Pip value per standard lot
- 10.00 USD
- Position
- 100,000 units
No exchange rate needed: the figures are already in USD.
Exchange rates: ECB reference rates, Nov 6. Reference rates are set once each business day, so results can differ slightly from a broker's live price. Everything is calculated in your browser; nothing you enter is sent anywhere.
How it is calculated
Multiply the position size in lots by the value of one pip per lot, then by the distance to the stop in pips. Add your balance to see that loss as a percentage of the account.
risk = lots × pip value per lot × stop loss in pipsshare of balance = risk ÷ balance × 100
A stop loss is an instruction, not a guarantee. In a fast market, or when prices gap over a weekend, it can be filled at a worse price than the one set.
Worked example
- One lot of EUR/USD with a 50-pip stop: 1 × 10 dollars × 50 = 500 US dollars.
- On a balance of 10,000 dollars, that is 5% of the account.
Risk. These tools do arithmetic on the figures you enter. They are not advice, and unless a field asks for them they leave out spreads, commission, financing and slippage. Past results do not predict future ones. Trading leveraged currency products carries a high risk of loss. Read our financial disclaimer.