Position Sizing
How to size your trades to protect capital and manage risk.
Last reviewed: 2026-03-06
Article content
Overview
Position sizing determines how many lots or units you trade. It is one of the most important skills in forex. Proper sizing ensures a string of losses does not wipe out your account. Most professionals risk 1-2% of capital per trade.
Fixed Risk Method
Decide how much you will risk per trade (e.g. 1% of $10,000 = $100). Place your stop loss. Calculate lot size so that if the stop is hit, you lose exactly $100. Use our position size calculator to do this quickly.
Key Rules
Never risk more than you can afford to lose. Reduce size in drawdowns. Increase size only when you have a proven edge and stable psychology. Consistency matters more than occasional home runs.
Knowledge check
1 of 3What percentage of capital do most professionals risk per trade?
FAQ
Common questions about this topic.
What percentage should I risk per trade?
1-2% is standard. Beginners should start with 0.5-1%. Never exceed 2%.
How do I calculate lot size?
Use: Risk amount / (Stop loss in pips × Pip value per lot). Or use our position size calculator.
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