Position size calculator
This Invezz position size calculator lets you manage your risk by making sure you’re not overcommitting to a single position. Keep reading to see how our position size calculator works, and how it can help you manage risk as a forex investor.
How to use our position size calculator
To use our position size calculator, follow these steps:
- Enter the currency you’re using to fund your forex account.
- Enter your account balance.
- Enter your risk percentage (i.e. what percentage of your balance you’re risking on a single trade).
- Enter your stop loss information (expressed in pips).
- Enter the currency pair you plan to trade (for example, GBP/EUR).
- Click calculate to see the results.
How the position size calculator works
Our position size calculator incorporates your account balance and risk tolerance (as expressed by risk percentage) to recommend appropriate position size limits on your forex trades.
Why should I use it?
Forex trading can be a profitable endeavour but also a risky one; failure to account for risk could lead to big losses, or even having your account balance wiped out in a single trade. By building a sound strategy based on carefully considered position sizes, you can seek to capitalise on the volatility of the forex market but also live to fight another day even when a few trades don’t go your way.
What is a position size?
Position size is the amount or percentage of your total portfolio that you plan to devote to a single forex trade. Setting reasonable position size limits is an essential tool for any forex trader, whether you’re a beginner or a seasoned veteran.