Understanding the Position Size Calculator
Proprietary trading involves strict risk management parameters. The position size calculator is designed to help funded traders calculate their metrics with precision before executing a trade in the live market, safeguarding their accounts from accidental breaches.
Frequently Asked Questions
How do I calculate position size for a prop firm?
Enter your funded account balance, your risk percentage (typically 0.5-1% for prop firms), your stop loss in pips, and the pip value for your currency pair. The calculator will output the exact lot size to use.
What lot size should I use for a $100K funded account?
With a $100,000 account risking 1% per trade ($1,000) with a 20 pip stop loss on EUR/USD ($10/pip), you should use 5.0 standard lots. Adjust based on your specific stop loss distance.
How do I calculate lot size for Gold (XAU/USD)?
Gold has a pip value of approximately $100 per standard lot (for a 0.01 move). Select the Gold pip value option and enter your stop loss in pips. The calculator handles the different contract specification automatically.