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How to calculate Forex lot size

For USD-quoted pairs a pip has a fixed dollar value, so the math is short.

Pip value

On EUR/USD, GBP/USD, AUD/USD and NZD/USD a pip is 0.0001. One standard lot (100,000 units) makes or loses $10 per pip, a mini lot (10,000) $1, and a micro lot (1,000) $0.10.

The formula

Lots = Risk $ ÷ (stop in pips × pip value per lot).

Examples

• $250 risk, 25-pip stop: 25 × $10 = $250 per standard lot, so 1 standard lot.
• $250 risk, 40-pip stop: $400 per standard lot is too much; $40 per mini lot gives 6 mini lots ($240) or 7 ($280).
• $100 risk, 30-pip stop: $3 per micro lot, so 33 micro lots ($99).

From prices

Entry 1.08500, stop 1.08250: the difference is 0.00250, which is 25 pips.

Use the Forex lot size calculator to get standard, mini and micro lots at once.