Free tools
Position size & risk planner
Enter your balance, how much of it you are prepared to lose if the stop is reached, and your entry and stop prices. The planner works out the position size that keeps that loss to your amount. Add a target to see the reward:risk ratio and the hit rate at which it breaks even.
Account and risk
Prices
Below the entry price. The planner sizes long positions.
Instrument
Value of 1 unit of the quote currency in your account currency. 1 when they match.
Position size—
Standard lots—100,000 units each
Amount at risk—
Risk per unit—
Notional value—
Pip value per lot—
Pip value, this size—
Reward at target—
Reward : risk—
Break-even hit rate—
Amounts are in your account currency. This is arithmetic only: it leaves out fees, spread, slippage, gaps past the stop, leverage and margin, and it is not a recommendation to take any trade or to use any particular size.
How it works
The amount at risk is your balance times the risk percentage, or the fixed amount you enter. The risk per unit is the distance between entry and stop. Dividing the first by the second gives the number of units whose loss at the stop equals the amount at risk. The planner sizes long positions, so the stop sits below the entry and a target above it.
For forex, the stop distance is also counted in pips, and the size is shown in standard lots of 100,000 units. One pip on one lot is worth the pip size times 100,000 in the quote currency; the conversion rate turns that into your account currency.
With a target, reward:risk is the target distance divided by the stop distance. If that ratio is R, wins at R and losses at 1 cancel out when the hit rate is 1 ÷ (1 + R): 50% at 1:1, about 33% at 2:1, 25% at 3:1. Below that rate the average result of those fixed distances is negative; above it, positive. Real fills, costs and gaps move both distances.