With no open trades, equity and balance are the same.
1 pip = 0.0001 on EUR/USD
Needed to convert the pip value into your account currency.
- Money at risk
- $100.00
- 1 pip with 1 lot
- $10.00
- 1 pip with this size
- $4.00
- If the stop is hit
- −$100.00 (1.00%)
11 stops in a row take the account past −10%
Rounded to the nearest 0.01 lots, as Terminal MT5 does. Spread, commission and slippage are not included.
The calculator needs JavaScript. You can still work out the size by hand with the formula below.
Why size by risk, not by a fixed lot
Trading the same lot size on every trade feels simple, but the amount you lose when the stop is hit then depends on how far away the stop is. With 0.50 lots on EUR/USD, a 10-pip stop loses about $50, while a 50-pip stop loses about $250: five times more for the same kind of trade.
Sizing by risk turns that around. You decide first how much of the account a losing trade may cost, for example 1%, and the lot size follows from the stop. A tight stop gets a bigger position, a wide stop a smaller one, and every loss costs roughly the same. That is also what makes daily and overall loss limits, such as the ones prop firms set, much easier to respect.
The formula in three steps
- Money at risk = account equity × risk %. With $10,000 and 1%, that is $100. Equity is your balance plus or minus the result of any open trades, so with no trades open the two are the same.
- Stop loss in pips: the distance between your entry and your Stop Loss. On TradingView you can read it from the Long or Short Position tool.
- Pip value: how much one pip is worth with one standard lot, in your account currency. On EUR/USD with a USD account it is $10.
Then:
Lots = money at risk ÷ (stop loss in pips × pip value per lot)
$100 ÷ (25 × $10) = 0.40 lots
Round the result to the lot step of your broker, usually 0.01. Terminal MT5 rounds to the nearest step, and so does the calculator, so the real risk can be a few cents above or below the target. If you size by hand and want to stay under it, round down instead.
What a pip is worth
One standard lot is 100,000 units of the base currency on forex pairs. A pip is 0.0001 on most pairs and 0.01 on pairs quoted in Japanese yen. Gold is different: one lot is usually 100 ounces, and in this guide a pip on gold is a price move of 0.10.
| Symbol | 1 pip | Value of 1 pip with 1 lot (USD account) |
|---|---|---|
| EUR/USD, GBP/USD, AUD/USD, NZD/USD | 0.0001 | $10, always |
| USD/JPY | 0.01 | 1,000 ÷ USD/JPY price (at 150.00: $6.67) |
| USD/CAD, USD/CHF | 0.0001 | 10 ÷ the pair's price |
| XAU/USD (gold, 100 oz) | 0.10 | $10 |
When the pip is paid in another currency
A pip is always paid in the second currency of the pair, the one MT5 calls the profit currency: US dollars on EUR/USD, yen on USD/JPY, pounds on EUR/GBP. If that is not your account currency, the pip value has to be converted with the current price of the pair that joins the two:
- USD account, EUR/USD: the pip is paid in dollars, so no conversion. It is $10.
- USD account, USD/JPY: the pip is paid in yen (1,000 yen per lot), so it is divided by the USD/JPY price.
- EUR account, EUR/USD: the pip is paid in dollars ($10), so it is divided by the EUR/USD price: at 1.1150, about €8.97.
- USD account, EUR/JPY: the pip is paid in yen, so you need the USD/JPY price, not the EUR/JPY one.
The calculator works this out on its own: it shows the extra price box only when a conversion is needed, and tells you which pair's price to type.
Worked examples
EUR/USD, USD account
$10,000 equity, 1% risk ($100), 25-pip stop, $10 per pip:
$100 ÷ (25 × $10) = 0.40 lots
USD/JPY, USD account
$25,000 equity, 0.5% risk ($125), 28-pip stop, price 150.00, so a pip is worth $6.67:
$125 ÷ (28 × $6.67) = 0.669, rounded to 0.67 lots
Gold on a prop firm account
$50,000 equity, 0.5% risk ($250), stop 5.00 below the entry (50 pips of 0.10), $10 per pip:
$250 ÷ (50 × $10) = 0.50 lots
EUR/USD, EUR account
€10,000 equity, 1% risk (€100), 20-pip stop, EUR/USD at 1.1150, so a pip is worth about €8.97:
€100 ÷ (20 × €8.97) = 0.557, rounded to 0.56 lots
Common mistakes
- Mixing up pips and points. MetaTrader 5 measures distances in points, and on five-digit quotes 10 points = 1 pip. A "250" stop in MT5 is usually 25 pips. Typing points into a pip calculator gives a lot size ten times too small.
- Assuming every symbol has the same contract. Gold, silver, indices and crypto have different contract sizes from one broker to another. For anything other than forex, check the contract in MT5 (see below) or use the "Other symbol" option with the right pip value.
- Forgetting the minimum lot. On a small account with a wide stop, the exact size can fall below 0.01 lots. The trade then can only be opened at 0.01, which risks more than planned. The calculator warns you when that happens.
- Forgetting the costs. Spread, commission and slippage make a real loss slightly bigger than the planned one. If you work close to a loss limit, leave some room.
- Using an old figure. After a few trades, your equity has changed. Recalculate with the current one, especially on prop firm accounts with a daily loss limit.
Check the numbers in MetaTrader 5
Every symbol in MT5 has a Specification window with the details your broker uses. In Market Watch, right-click the symbol and choose Specification.
The figures that matter are:
- Digits: with 5 digits on EUR/USD (or 3 on USD/JPY), 10 points make 1 pip.
- Contract size: units in one lot (100,000 on forex, often 100 on gold).
- Profit currency: the currency a pip is paid in. If it is not your account currency, the pip value needs converting.
- Minimal volume: the smallest trade you can open, usually 0.01 lots.
- Volume step: how finely you can size it, usually 0.01.
If those match the assumptions above, the calculator's result applies to your broker as it is.
Doing it without the calculator
Working out the size before every trade takes a minute: read the stop on the chart, type it into a calculator, then type the lots into MetaTrader 5. That is the step Terminal MT5 removes. It is a Chrome side panel next to your TradingView chart that sends orders to your own MT5.
- Draw the trade with TradingView's Long or Short Position tool and click Paste Position. Entry, Stop Loss and Take Profit go into the panel.
- Choose Risk % and type the percentage. The Expert Advisor works out the lot size with the same formula, using your current equity and your broker's own tick value and lot step for that symbol.
- Click BUY or SELL.
The panel, Paste Position and order management are free. Risk % lot sizing is part of PRO, a one-time upgrade. If you are new to the setup, the guide on sending orders from TradingView to MetaTrader 5 compares it with the other options.
Common questions
How much should I risk per trade?
There is no single right number, and it depends on your strategy and your rules. Whatever figure you choose, check that a long losing streak would not break your daily or overall loss limit.
Should I use balance or equity?
Terminal MT5 uses the equity, and so does this calculator, so both give you the same lot size. With no trades open, equity and balance are the same. With losing trades open, the equity is lower, so the next trade comes out a little smaller.
Why is my result different from another calculator?
Usually because of rounding, the balance used instead of the equity, a slightly different exchange rate, or a different definition of a pip on gold. Check the contract size and digits in MT5, and use the same pip definition everywhere.
What is the difference between lots, mini lots and micro lots?
A standard lot is 100,000 units, a mini lot 10,000 (0.10 lots) and a micro lot 1,000 (0.01 lots). MetaTrader 5 always shows volume in standard lots, so 0.40 means four mini lots.
Trading forex and CFDs involves a high level of risk and may not be suitable for all investors. This guide and calculator are for information only and are not financial advice. Check every order before you send it.