What is Position Size Calculation?
Position size calculation is the first step for managing the risk while you are about to take a Forex trade position. The free position size calculator will help you in calculating the position size as well as will help you in determining the amount you will be risking for that Forex trade. Please note that the we may be going long or short on one currency pair but our account currency may be a currency which is not a part of that currency pair. In such case it is more important to calculate the position size which is best to minimize the risk in our account currency.
Please fill the required fields in the following form and click on the “Calculate” button. The explanation for determining the position size is below the calculator.
Position Size Calculator for Your Trade
Though we have described position sizes in the section Forex Account Types but the meaning of position size in terms of risk management go even deeper.
Position size with fixed lot types:
We have seen in the above mentioned section that the fixed size lots are “Standard lot”, “Mini Lot” and Micro lot”. Now some traders trade with multi lot strategies. What it means is that may trade for more than one pair at different prices? In such case we need to keep a more careful watch on the position size in terms of our “Account Currency” to see how much position of the account size is getting blocked for that position.
Position size with Flexible lot sizes:
The same is true with the flexible account sizes. In fact for flexible account sizes where we can take positions of any amount, an exact calculation of margin requirement becomes more important.
It is recommended to use position size calculator for a better risk management before deciding on any trade.
You may wish to check the value of 1 pip in your account currency. You may use "Pip Value Calculator". You may also like to see "Margin calculation" for your trade.