Position sizing is crucial for risk management in forex trading:
- Account Balance: Enter your current trading account balance in USD
- Risk Percentage: How much of your account you're willing to risk per trade (typically 1-2%)
- Stop Loss: The distance in pips from entry to your stop loss level
- Pip Value: The monetary value of one pip movement (usually $10 for 1 standard lot)
Lot Sizes:
- Standard Lot: 100,000 units ($10 per pip)
- Mini Lot: 10,000 units ($1 per pip)
- Micro Lot: 1,000 units ($0.10 per pip)