Position Size Calculator
This is a Forex Position Size Calculator also known as a Risk Calculator. It is one of the most important and first step to having good risk management. Risk Calculators quickly calculate recommended lot sizes, currency units risk percentage and stop losses.
How big or small should your trading position be? This tool helps you to decide what amount of money you use to trade and also to know the maximum amount you would be risking.
First, choose your local currency then enter the amount balance in your broker account. Next, the percentage/amount of your account you wish to risk, your set Stop Loss and finally, the currency pair you intend to trade. After, confirm by clicking the Calculate button the forex calculator will do it’s job. The Setupps™ Trading position size calculator will display the risk amount, position and lot sizes below based on the information you provided.
Why Would A Trader Need To Use A Position Size Calculator
Without a road map or a satellite navigator a driver driving to an unknown destination could waste a lot of their time driving round in circles, so to speak. They could have reached their destination earlier without risking getting lost on their way to that destination.
Not only would this driver have lost time but more significantly they would have lost money by wasting their fuel during the cause of driving around finding their destination.
Similarly, a forex trader can not be a successful, efficient nor effective trader without consistently planning their trades prior to them applying their EDGE to enter the market. They have to plan their trades every time. A vital part of planning a trade is by first using the position size calculator above.
Don’t know how to use it yet? This is included in Module 1 of our forex trading course.