What is the Position Size Calculator?
TradingFinder's Position Size Calculator serves as a risk management tool that recommends a trading position value based on the input parameters. This free tool is applicable in forex, cryptocurrency, and stock markets.
Input Parameters for TradingFinder's Position Size Calculator
This calculator works with the following input values:
- Trading Symbol: The currency pair or asset intended for trading;
- Account Currency: The base currency in the trader's account;
- Account Balance: The available capital in the trader's account;
- Risk Percentage: The trader's risk tolerance;
- Stop Loss: The difference between entry price and Stop Loss level in pips;
- Currency Conversion Rate.
The last value can be set either automatically (based on market data) or manually.
How Outputs are Calculated in the Position Size Calculator
The tool's outputs are calculated as follows:
- Risk Amount = (Account Balance × Risk Percentage)/100
- Position Size = (Risk Amount)/(Stop Loss × Pip Value)
- Standard Lots = Position Size/100000
- Mini Lots = Position Size/10000
- Micro Lots = Position Size/1000
Application of TradingFinder's Position Size Calculator
The core function of this service is risk management through determining an appropriate volume for trading. More specifically, when a trader enters the specified amount provided by this tool or less in their trade, they will not exceed their risk tolerance level.
Additionally, TradingFinder's Position Size Calculator helps traders gain better control over their emotions by establishing a specific trading amount, leading to more precise results.