In Forex a Lot defines the trade size, or number of currency units to be bought or sold in a trade. One Standard Lot is 100,000 units of base currency. Most brokers allow trading with fractional lot sizes down to . 01 or even less. Fractional lot sizes are sometimes referred to as mini lots, micro lots and nano lots.
How To Use Position Size & Risk Calculator: (Select and/or impute your particular details of any pending trade)* THEY ARE FREE ON LINE!!!
Currency pair: Traders can select from Major Forex crosses, Minor pairs.
Stop loss (pips): Traders should input the maximum number of pips they are willing to risk, or lose, in a trade, to protect the account equity in case the market goes against their position.
Account balance: Pretty straight forward, traders just need to input their account equity.
Risk: The crucial field of this Position Size and Risk Calculator! In this field traders can select from a risk percentage or any amount of their account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of their account equity per trade. This technique will allow for traders to last longer with their trading careers, and eventually, also to recoup from previously losing trades.
Now Hit the “CALCULATE” button
The results: The Position Size and Risk Calculator uses a market price live feed with the current inter bank rate (in a 5-digit format) and it will display the selected currency pair price
Calculator displays the amount of units that that a lot represent; how many trade units and finally the portion of the account equity at risk, or the value of the position, in this case $100 USD.