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How to calculate position size in 3 steps

October 11, 2026 · 1 min read

Position sizing is the single most important habit for survival in trading.

1. Decide your risk per trade

Most professionals risk 0.5%–1% of their account per trade. On a $10,000 account, 1% is $100.

2. Measure your stop-loss distance

Place your stop where the trade idea is invalid — not where it feels comfortable. Measure the distance from entry to stop.

3. Divide

Lot size = Risk amount ÷ (Stop distance × Contract size)

Use the Risk Manager calculator in your dashboard to do this automatically.