Capital Preservation
Position Sizing & Lot Sizing Calculator
Protect your account capital. Learn how stop loss distance in pips determines your lot sizes for capital preservation.
01. The Math of Position Sizing
Professional risk management starts with position sizing. Calculate your lot size based on your stop loss distance. Use this formula: Position Size = (Capital * Risk %) / Stop Loss distance / Pip Value.
02. Standard, Mini, and Micro Lots
Understand contract sizes: Standard Lot = 100,000 units ($10/pip), Mini Lot = 10,000 units ($1/pip), Micro Lot = 1,000 units ($0.10/pip).
03. Dynamic Volatility Adjustment
During high volatility, widen your stop loss distance and reduce lot sizes proportionally to maintain a constant risk profile.