Position size calculator for gold and forex
Lot size calculator
Turn a trade idea into a lot size you can live with. Enter your balance, your risk and the idea's entry and stop. You'll get the lot size, your +1R, +2R and +3R prices, and what taking profit in thirds would mean in money.
How to calculate lot size
Lot size answers one question: how big can this trade be, so that if the stop loss is hit, I lose exactly the amount I decided on?
- Your risk in money. Balance × risk %. With $3,000 and 1%, that's $30.
- Your stop distance in pips. Entry 4032, stop 4024 on gold: $8.00 of price, which is 80 pips.
- The value of one pip. On gold, $10 per pip on one standard lot, $0.10 on 0.01 lots.
- Lot size = risk ÷ (stop pips × pip value) = $30 ÷ (80 × $10) = 0.0375, rounded down to 0.03 lots.
We always round down to the nearest 0.01 lot, because rounding up would mean risking more than you planned. The calculator shows the real amount at risk after rounding.
Gold lot sizes at a glance
Lot sizes for XAU/USD when you risk 1% of your balance, for four common stop distances.
| Balance | 30 pips$3 move | 50 pips$5 move | 100 pips$10 move | 200 pips$20 move |
|---|---|---|---|---|
| $500 | 0.01 | 0.01 | under 0.01 | under 0.01 |
| $1,000 | 0.03 | 0.02 | 0.01 | under 0.01 |
| $2,000 | 0.06 | 0.04 | 0.02 | 0.01 |
| $5,000 | 0.16 | 0.10 | 0.05 | 0.02 |
| $10,000 | 0.33 | 0.20 | 0.10 | 0.05 |
"Under 0.01" means even the smallest position would risk more than 1% of that balance with that stop.
Why +1R, +2R and +3R?
"R" is the distance from your entry to your stop. Measuring targets in R makes every trade comparable: +2R means you made twice what you risked. A common plan is to take a third off at each of +1R, +2R and +3R, and move your stop to your entry once +1R is reached. If the position is smaller than 0.03 lots, you can't split it into thirds, and the calculator tells you so.
New to reading trade ideas? Start with how to read a gold trade idea. Want to know what a move is worth at a given lot size? Use the pip and profit calculator.
Questions about lot size
How do I calculate lot size for gold?
Lot size = money you are willing to lose ÷ (stop loss in pips × $10). On gold one pip is a $0.10 move and is worth $10 on one standard lot. Example: $1,000 balance, 1% risk ($10), 50-pip stop: $10 ÷ (50 × $10) = 0.02 lots.
How much is 1 pip on gold?
One pip on XAU/USD is a $0.10 move in price. It is worth $0.10 at 0.01 lots, $1 at 0.10 lots and $10 at 1 standard lot (100 ounces).
What lot size should I use on a $100 or $500 account?
With 0.01 lots, the smallest size most brokers allow, a 50-pip stop on gold risks $5. That is 1% of a $500 account, but 5% of a $100 account. With a small account the honest answer is: use 0.01 lots, keep stops tight, and accept that each loss is a bigger share of your balance.
Is lot size the same as position size?
Yes. Position size is how big your trade is; lots are the unit it is measured in. A position size calculator and a lot size calculator do the same job.
Does this calculator work for forex pairs too?
Yes: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY, USD/CAD and USD/CHF. For pairs where the US dollar comes first (USD/JPY, USD/CAD, USD/CHF), the pip value depends on the current price, so the calculator asks for it.
Why does the calculator round down?
Brokers trade in steps of 0.01 lots. Rounding up would mean risking more than you planned, so we always round down and show the real amount at risk.
For education only. Pip values are for a USD account and can differ slightly between brokers and with live exchange rates. Always check the position size in your trading platform before you place a trade.