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Forex Calculators – Position Size, Pip Value, Margin, Swap and Profit Calculator

The secret to good Forex trading is to use sound judgement and analysis of the currencies you wish to trade on and prepare yourself in case your chosen trade loses. This article will teach you basics of prolonging your trading capabilities.

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Managing Risks

When it comes to trading, there is one major difference between a beginner and a professional trader:

A new trader concentrates on how much money he can make, while an experienced one focuses on how much money he can lose.

Now think of that for a moment. It may seem like the new trader is optimistic and the professional is a pessimist, but that is not the case. One of the traits traders acquire over time is learning how to lose gracefully.

The truth behind investing is that stumbling across losing trades is inevitable. No trader is correct 100% of the time. Even if he is 100% correct in choosing the trade setups, the market can sometimes behave against what was expected. However, properly managing your risks is vital for long-term success. Loss is a part of investing/trading and thus, you must prepare yourself for the worst.

Forex risk management is all about knowing and limiting the risks in forex trading. There’s always the likelihood that the forex market can move against you, increasing your losses over time. Hence, you’ll want to use a protective stop loss: a strategy that allows you to protect your gains or prevent additional losses. Such a technique activates at a given price level that assures a trader that he will make a predetermined profit or loss.

So, before you enter a trade, you should make an exit plan. However, if the market continues to move against, some novices will insist on holding on to a trade, desperately hoping that it will go back up for the sake of recouping their losses. In a worst case scenario, the market continues to go against them consistently and never rebounds. As their emotions ensue, they now have taken bigger losses than they can cope with. Now, trading for them has become a total nightmare or what is termed as a margin call.

Through lack of planning and emotional takeovers, you are putting yourself at high risk. When you have real money on the line, you’ll tend to make decisions based on greed or fear. Instead, you should make choices based on sound analysis rather than the need to get out of a trade. On the other hand, traders have exited trades they thought have bottomed out, only to find the market moves back up. Anyway, those who decide not to let this happen to them again become better traders.

Hence, there are three great strategies that you must apply again and again and again:

  1. Determine your entry
  2. Identify your risk
  3. Protect your potential profit

Managing Your Trade

We can look at risk through probability. Apparently, when we toss a coin and choose heads or tails, there is a 50% chance that we’ll be correct. Assume that we’ll win a dollar every time we’re right and lose a dollar every time we’re wrong. We then are break-even traders.
To be profitable, one of two things must happen:

  1. We need to win a higher percentage of coin tosses (or trades).
  2. We need to profit more each time we’re right than we lose when we’re wrong.

Any successful trader knows that there is no one trade that is guaranteed to be a winner. Therefore, they don’t let the outcome of a trade affect them personally. They know that from a series of trades, they’re bound to find one that will earn them a profit. So, if they found a profitable trade in the past, they know they’ll find one again. The pros treat trading as a business rather than a form of entertainment.

They have two goals in mind:

  1. Think about winning half the trades: While some novice traders get lucky and win three out of four trades, sometimes they lose more pips on the fourth trade than they won on the first three combined.
  2. Use the classic 1:3 risk/reward ratio: This means to win $3 every time you’re right and lose $1 each time you’re wrong. Likewise, adjusting your protective stops according to forex market movement can increase your chances of being right over being wrong. I say 1:3 risk/reward, because it is an acceptable start for novice traders. Pros don’t think about less than 1:5 while they maximize their profit with some of the positions, sometimes up to 1:15.

Managing Your Account

When measuring risk, we must be familiar with one vital term: PIP

PIP is an acronym for percentage in point meaning the smallest price change that a given exchange rate can make.

As currencies are quoted, they are quoted to the full decimal place. For instance, take the following quote: EUR/USD 1.2391. The ‘1’ is the last digit to the right and thus the smallest amount the rate can increase or decrease by and hence is called the pip.

The very first question that comes to mind may be: How many lots should we open? This all depends on the total risk ratio you’re willing to take. Let’s say you had the following:

– Account balance: $5,000
– Trade size: 250,000 EUR/USD (2.5 lots)
– PIP cost: $25 per pip

Use our pip value calculator below.

Now let’s assume that you prepare for a 100 pip loss on this trade. This comes out to be a total loss of $2,500 ($25 x 100 pips). In this case scenario, the loss potential is $2,500 or 50% of our total account balance. Now it just doesn’t make much sense to take out as much as 2.5 lots on this trade since a 50% loss is rather steep.

With a risk ratio this high, we can run out of money before winning another trade. Therefore, we want to risk a limited number of pips and a limited amount of our account balance so we can continue to trading even after a few losses. Thus, it is advisable not to risk any greater than 2% of our account balance on any one trade at any one time. To get a better feel for calculating our trade size, we can carry out some simple calculations:

$5,000 x 2% = $100 maximum loss

What will we need to do?

1. Determine the stop distance on our trade.

2. Determine the pip cost of your trade. So let’s say that the pip cost per lot is $10.10. For 100 pips x $10.10 = $1,010. Now if we purchased 2 lots, our pip cost would double: 100 pips x $20.20 = $2,020. How about 3 lots? That of course would come out to be a loss potential of $3,030: 100 pips x $30.30 = $3,030.

In the previous calculation, we figured our maximum loss to be $100 and apparently taking one lot exceeds this. So in this scenario, it would be best to buy 0.1 lots.

Basic trading money management requires:

  1. Being prepared to take on a loss and managing risk appropriately
  2. Using protective stops whenever possible and adjusting them according to how the market is moving (up or down)
  3. Not allowing your emotions to take over, especially if the market tanks

It is best to limit your risk to 2% for each position, so you don’t lose a great deal of funds that can be applied on additional trades. Remember, patience and consistency are key virtues. One good trading opportunity now can lead to more in the future.

To have more winning trades, you have to learn and master a good and strong trading system, that not only help you locate the best trading opportunities, but also shows you the best possible place to set the stop loss orders to limit your risks.

Here is also some of the articles that help you in your money management plan. Don’t miss them:

  1. Money Management Is the Critical Part of Forex Trading
  2. How to Become Multi Millionaire Trading Forex, with a Proper Trading and Risk Management Method
  3. Double or Even Triple Your Forex Trading Account Risking 2-5% Only
  4. Leverage, Margin, Balance, Equity, Free Margin, Margin Call And Stop Out Level In Forex Trading
  5. What Is the Proper Risk and Reward Ratio in Forex Trading?

Position Size Calculator:

As a forex trader, sometimes you have to make some calculations. One of the most important thing that you have to calculate is the position size. To follow the money management rules, you have to know how much risk you are taking in each position, and to do that, you should be able to calculate your position size based on your account balance and the trade stop loss size. The below calculator makes the work much easier and faster. Please also read my money management article to learn more about this important topic:

Pip Value Calculator:

Use the below calculator to know how much money each pip makes for you while trading different currency pairs:

Margin Calculator:

Use the below calculator to know how much margin is required for each position:

Swap, Rollover or Interest Calculator:

Use the below calculator to know how much swap you have to pay or you will receive for trading different currency pairs:

Profit Calculator:

Use the below calculator to know how much money you will make trading different currency pair:

Position Size Calculator Script for MT4 Platform

Calculating the position size based on the percentage of the risk you want to take and the stop loss size of the trade setup you locate is a pain, specially when you are in rush to enter the market before it becomes too late.

You can use a position size calculator, but a calculator that does the job for you right on the trading platform is a much better option. Before sharing such a calculator, please let me explain a little about position size calculation. Why should you calculate your position size before entering the market?

Let’s say you have located a trade setup based on your trading system. That special trade setup needs a 100 pips stop loss. You have a $10,000 account and you want to risk only 2% of your account which is $200. It means if the price hits the stop loss, you should not lose more than $200. Now the question is how big your position size has to be?

If you take a one lot EUR/USD position with a 100 pips stop loss, then if it hits the stop loss you will lose $1000 because EUR/USD pip value is about $10, and so 100 pips means $1000. Therefore, if you want not to lose more than $200, then you have to take a 0.2 lots position which is 5 times smaller than one lot. Am I right?

This is how you have to calculate your position size. But the problem is, different currency pairs have different pip values. And to use a position size calculator, you have to enter the currency pair ask price. Besides, it takes time and you can make mistakes when you are in rush to take your positions as soon as possible. And usually you forget how to calculate when you are in rush.

So, an automatic tool that does all of this right on the trading platform is really helpful. A tool that calculates the pip value of each currency pair in the background and gives you the result.

One of the LuckScout users, Dionisis, sent us a script that calculates the position size based on the stop loss value and risk percentage. It also gives you the target value if you tell it how big you want your target to be.

Thank you Dionisis 🙂

This is how you can use the script according to Dionisis:

This script works only with the MT4 platform.

How to install:

  1. Click Here to download the script.
  2. Go to File->Open Data Folder->MQL4->Scripts
  3. Copy/Paste the script
  4. Restart MT4

The script can be accessed in the navigator window, under the “Scripts” list.

How to use:

1. Draw a horizontal line at the desired Stop Loss level:

2. Attach the script at the same chart.

3. The following pop-up window should appear (make sure the “Inputs” tab is selected):

4. In the “Stop_Loss_Price” cell insert the price shown by the red horizontal line drawn in the chart.

5. In the “risk’’ cell insert the amount of risk to be taken for this trade, as a percentage of account’s balance.

6. In the “Target’’ cell insert the target of the trade expressed as Stop Loss multiples. For example, for Take Profit=3xStop Loss insert 3.

For the given example the table should look like this:

7. Press “OK”. The following message will appear:

The position size shall be 0.0387 (round this based on your broker’s settings) and the Take Profit price shall be 0.8922.

The Stop Loss price is shown in the chart by the horizontal line. In terms of pips, it is given by the script’s output message (97 pips).

Notes:

  • This is just a script, it will not take or modify any positions.
  • The script will identify if it is going to be a short or a long position. In the former case it will include the spread pips in the stop loss calculation.
  • This script works for all account currencies and for 5 or 4 (2 or 3 for JPY pairs) price decimal digits.

New Version:

Click Here to download.

  • The issue with gold is fixed.
  • Two more features are added:
    1. The output window now also shows the currency’s spread (in points).
    2. An optional input (‘Enter_Price’) in case one wants to calculate the size for a pending order. If it is left to 0 (default value) the size will be calculated based on the current bid price.
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64 thoughts on “Forex Calculators – Position Size, Pip Value, Margin, Swap and Profit Calculator
  1. reza says:

    Love your Lot Size Calculator ! Keep up the good work

  2. kotwani says:

    please give us the similar calculator for equities, futures and options, if possible
    thanks

  3. San says:

    Hi Chris,
    thank you for these calculators. I have introduced myself to world just 2 months ago and I am hooked. I have heard about people blowing up their accounts so I am keeping a strong tab on risk management even on my demo account.

    So if I start with a $1000 account balance, for risk tolerance of 2%, and SL=100 pips, I can only open a position of 0.02 LOT ( or 2000 units or 2 micro lots). Thats a very SMALL position to open.

    I also reverse calculated and found that to open a position of 1 LOT size, ( with same 2% risk and SL=100 pips), we must have an account balance of $50,000!!

    So there is no way I should open a position of anywhere near 1 LOT with a $1000 account if I want to perform proper risk management. So novice traders will be trading very small lot sizes until their account has grown substantially.

    For 1 LOT size, 50 pips profit = $500 🙂
    for 0.01 LOT size, 50 pips profit = $5 🙁

    But I guess only slow and steady wins the race.

  4. Jeng says:

    Chris, these calculators are invaluable as I see it. Thank you very much for providing them. One concern/puzzlement: The Pip Value Calculator pairs selection appears to be somewhat limited, that is, I do not see the CAD/JPY pair in the drop down. Could this be a problem with my browser or is it the calculator? Your input please.

    Kind regards, and thank you!

    Jeng

    • Chris says:

      Hi Jeng,

      You are welcome.

      It should be the calculator problem because it has not been updated for such a long time. We will have to fix it.

  5. Adam says:

    Hi Chris, would you be able to add gold to the position size calculator?
    Thanks
    Adam

  6. BobH says:

    The Position Size Calculator and the Pip Value Calculator are tremendous trading tools. I think you are the only website that offers calculators of this quality and that have such ease of use. You have made is very easy to create a successful Money Management system! Thanks a lot! BobH

  7. James Gregory says:

    just wanted to say you have a awesome site all the tools any investor needs and i love reading all the articles great job

  8. juan says:

    Chris this is just amazing… what inspires to do this great website? i mean all of this is for free and the quality you provide here is excellent.. please keep this uo forever..i have learned a lot… i really love have not opened a live account ye but i am enjoying myself in the demo account using metatrader…

  9. priyam says:

    hi..how much profit can i have if i trade with a leverage of 200:1 , a sum of 100 us dollars , with a move of 3 pips.

    • Chris says:

      The amount of the money you make/lose has nothing to do with leverage. It depends on the position size you take. One lot EUR/USD makes/loses about $10 for each pip.

  10. Vindy says:

    Hi Chris,

    Could you please explain how margine is calculated when USD is the base currency. (USD\JPY) Assume leverage is 200:1.

    Thanks

  11. thierry says:

    could you please provide the formula used by each tool…with a explanation of variables

    • Osegie says:

      Chris, good day to you and I will always thank you for this services you are providing for free to so many people here. I was using the pip value calculator and comparing its results to what I have been having on my live trade account and they are not matching. The pip value from the trade account appears to be 10 times less than what the pip value calculator is giving. For instance, the pip calculator gives $10 value per pip if trading 1 LOT EUR/USD, but the real live account gives $1 value to a pip. Could this be a little error from the calculator?
      Thanks Chris and remain blessed

      • Thank you too.

        I don’t think this is related to calculator. A $10 value for one lot EUR/USD makes sense. What you see on your platform doesn’t make sense. Could you please share a screenshot of the platform terminal when you have a one lot open position?

        You can upload the picture to tinypic.com and share the URL here.

  12. CY says:

    Hi Chris,
    I get confused with leverage and lot size although I have studies the leverage website and money management website for few time.

    1. The amount money I paid for buying with leverage, 10:1 with lot size, 1 lot compare to buying with leverage 1:1, with lot size, 0.1 lot is the same?

    2. What is the loses between 2 scanario above when come to profit/loss?

    Could you help to explain that. Thanks so much.

  13. Paul says:

    Hey Chris, your blog is the best. I’ve been demo trading for more than 3 months now, with good results. Now I want to start live trading, but I can’t afford investing a huge capital. Do you think is it possibile to begin with 100 bucks?

  14. Paul says:

    Hi Chris, thank for answering me. I was thinking to open an account with a market maker, earn 1000 or 2000 bucks, and then open a ECN account. I know market makers are not very honest, but I believe they don’t make too much problems as long as you don’t earn load of many. Do you think is it a bad idea?

  15. Paul says:

    Thanks Chris. I hope it too. Is 1000 bucks enough to open an ECN account? I’ve heard some ECN brokers asking 5000 or 10000 bucks as minumum account size.

  16. Maria says:

    Hi Chris,

    Wouuld you mind sharing the formula to calculate profit here? I have found one but the result was different than your profit calculator. I would like to memorize it so I don’t have to go to this page whenever I calculate it. Thank you!

    • Maria,

      It is very easy. You just calculate the pip value and multiply it to the number of pips you have made. For example, if you have made 100 pips while pip value is $10, then your profit is $1000.

  17. kahsay says:

    hi chris can you tell me please how to know the number of units each currency pairs.
    thank you

  18. Himanshu Sahai says:

    Hi Chris sir

    If i enter USD as account currency and want to trade in NZD/CHF then why position size calculator ask for current USD/CHF ask price…it should ask for enter NZD/CHF ask price…Please clear.

    • Himanshu,

      Your position size calculator is correct. It has to know the USD/CHF rate to calculate the NZD/CHF pip value and positions size , because the base currency of this market is USD.

  19. Ahmad Sobeih says:

    thanks Chris

  20. Himanshu Sahai says:

    Thank you Chris sir.

  21. Shadreck Mabvoro says:

    Thanks Chris,

    You surely make our life easier.

  22. PREM KUMAR says:

    Sir,
    Thank you for guiding us with different strategies of trading.
    It would be of great help if you add all the pairs in the profit calculator tool.

  23. buddy says:

    Speaking about lot sizes, 9.00 and 10.00, they mean respectely 900 thousand bucks and one million, am I right? People who trade 1 million at time, they don’t need to take more than one position at time, am I right?

    • > Speaking about lot sizes, 9.00 and 10.00, they mean respectely 900 thousand bucks and one million, am I right?

      Yes.

      > People who trade 1 million at time, they don’t need to take more than one position at time, am I right?

      They can take as many positions as they want if their account size allows them to.

  24. Charles Booth says:

    Hi i have an a demo account through mt4 and two accounts one for me and one for my brother. His is is through metaquotes and mine is through mb trading. We both placed an order with eru/jpy and noticed that the candle pattern with ddb system are different. Is this normal and if so what could cause this discrepancy. Thanks

    https://www.mql5.com/en/charts/3746212/eurjpy-d1-metaquotes-software-corp?bind=1

    https://www.mql5.com/en/charts/3746216/eurjpy-d1-mb-trading-futures

    • Charles,

      As I see, every week there is an extra candlestick on the first chart. That extra candlestick is related to Sunday afternoon and it is because of the daily candlestick close time which is not properly set on the first platform. So, you’d better to use the second platform.

  25. Charles Booth says:

    Thanks I was thinking the broker was manipulating the price some how, im pretty sure mbtrading is one of the rare ecn brokers that take us citizen but im still doing home work on it as i demo trade.

  26. Christopher Barabas says:

    Hi Cris,

    Can you link both the “Position Lot Size” and “Margin Calculator” can you also add margin call percentage of the broker we used on the margin calculator so we know immediately if we’re within safety range to avoid margin call, also linking both position lot size & margin calculator will allow us to play on the numbers we input if we need to add or lessen the numbers to avoid margin call, to widen our SL or maximize the position lot size to gain more profit. Hope you understand what I mean here and appreciate your kindness and may God Bless You and Your Team. Having an EA like this will be very helpful to us.

  27. Nadi brh says:

    Hi Chris

    Thank you for this amazing tool.

    Can you add the option of entering the stop-loss value to the calculator so that we can have an exact value of our stop loss?

    I mean there would be an extra option besides the stop-loss in pips.

    Thanks a lot

    • Nadi,

      You’re welcome.

      With “Position Size Calculator” you have to enter the stop loss pipage based on the trade setup you have located. Therefore, you should already know where you will place the stop loss. Am I right?

      • Nadi brh says:

        Yes you are completely right.

        I just want to have all the data available in the calculator otherwise there is no problem with it

  28. titanium says:

    The calculator tells me my position size should be 0.888. What it mean? 0.08 lot?

  29. titanium says:

    Thank you, Cris. But how can 0.888 mean 0.9 lot? It’s pretty complicated to understand? What’s the logic behind it? Is there an easier calculator to know the size of the posiion I need to take?

    • You just round the number.

      When it is 0.88, you omit the second 8 and add one unit to the first one and it becomes 0.9.

      However, when it is 0.84, you just omit 4 and you will have 0.8.

      When the second decimal is 5 or greater, you add one unit to the first decimal. When the second decimal is below 5, you just omit it.

  30. titanium says:

    Thank you very much, Chris. You’re always a great teacher.

  31. Randy Mosadi says:

    Thank you Chris for your calculators.

    Is it at all possible for you to graciously add the EUR/NZD currency pair to the profit calculator?

  32. Md Shafiqul Islam says:

    Hello Chris,
    How r u first of all?
    I have found another question in my mind that I need to ask u. I have calculated the position size of a currency pair using ur position size calculator given on ur website & the calculator used in MT4 meta trader. But now I am confused that why there is shown the different position size of one currency pair. pls solve it
    Thanks a lot
    Here is also the link of screen shot of both items

    https://dl.dropboxusercontent.com/u/212556891/screen%201.jpg

    https://dl.dropboxusercontent.com/u/212556891/screen%202.jpg

  33. Md Shafiqul Islam says:

    Do you prefer using Website calculator to MT4 calculator?

  34. sam cho says:

    Hi Chris, Just a quick question, I don’t really know if this is correct but what if the stop loss pip amount is 800 pips and your account size is $1000 USD demo. Using micro lots I would risk $80 which is 8% of my account. What do I do in this situation? Am I wrong? can you refer to an article?

  35. Transarm . says:

    Hi Chris
    Is there something wrong with Position Size Calculator for NZD/USD?
    I calculated 2% loss for 70pips but I lost 4% instead.

  36. Jan Jula says:

    Hi Chris,

    For my understanding, please kindly correcting me. ===>
    If I trade with the Mini Account , 1:100 leverage
    My account fund = 1,000$
    Risk 2% of fund = 20$
    S/L distance = 50 pips
    Position Sizing = 20$/50 pips = 0.4 lot ……… correct ?
    or 0.04 lot ? and why ?

    Thank you in advance,
    JJ

  37. Daniel M says:

    Dear Luckscout,

    Again congrats and thank you so much for your hard work!

    Quoting San in this very same article:

    “So if I start with a $1000 account balance, for risk tolerance of 2%, and SL=100 pips, I can only open a position of 0.02 LOT ( or 2000 units or 2 micro lots). That’s a very SMALL position to open.”

    If the previous scenario was bound to a daily chart, should we stick with this time frame and grind through?

    Or may that work as a signal that we may be over our heads regarding to risk/SL management and would be a wise strategy to drop a notch to 4H time frame?

    • Thank you too Daniel.

      If your account can’t handle a big stop loss, then the solution is not referring to the shorter time-frames and increase your risks. You will lose your money easier there.