CALCULATOR
Forex & Gold Position Size Calculator
Institutional-grade risk management. Calculate exact lot sizes automatically calibrated to NFA (USA), ESMA (Europe), and Offshore margin limits. Now supports XAUUSD.
TRADE SETTINGS
CALCULATION RESULTS
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Mastering Risk Management: Forex & Gold
Step-by-Step Usage Guide
Position sizing is the math that keeps you in the game. It ensures that a string of losses doesn't wipe out your account.
- 1. Determine Stop Loss: Analyze the chart and find your technical invalidation point (e.g., below a Swing Low). Measure this distance in Pips. .
- 2. Input Balance: Enter your current account equity.
- 3. Set Risk %: We recommend 1% to 2% per trade. This means if the trade hits your Stop Loss, you only lose 1% of your account.
- 4. Select Leverage: Choose your broker's leverage setting (e.g., 1:50 for USA, 1:500 for Offshore). This checks if you have enough margin to open the trade.
Strategy: The "Fixed Fractional" Model
This tool is built on the Fixed Fractional money management method. As your account grows, your position sizes (lots) naturally increase. As your account draws down, your position sizes decrease.
Most Prop Firms (like FTMO or MFF) have a 5% Daily Drawdown limit.
Strategy: Set your Risk Ratio to 0.5%. This gives you a "buffer" of 10 consecutive losses in a single day before you lose your funded account. Never risk 2% on a Prop Firm account.
If you are in the USA (NFA) or Europe (ESMA), your leverage is capped (1:50 or 1:30). If this calculator shows a "Margin Error," you must reduce your position size or tighten your Stop Loss.
Mastering Risk Management: Forex & Gold
Gold (XAUUSD) vs Forex Lots
Calculating lots for Gold is different from Forex pairs like EURUSD. This calculator handles the math automatically:
Contract Size: 1 Standard Lot of Gold = 100 Ounces (Not 100,000 units).
Pip Value: A 1 pip move (0.01) on 1 Lot = $1.00 USD.
Note: While Forex uses 100,000 units per lot, Gold uses 100. Always ensure you are calculating for XAUUSD specifically.