Position size calculator
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Position Size Calculator for Gold and Oil
Work out how many lots to trade so that a stopped-out trade loses only the amount you decided to risk. Enter your balance, the percentage you are willing to lose, your entry and your stop loss.
The position size formula
Lots = (account balance x risk %) / (stop distance x contract size). The stop distance is the difference between entry and stop loss in price units.
Example: a $10,000 account risking 1% risks $100. A gold trade with a stop $5 away on a 100 ounce lot gives $100 / ($5 x 100) = 0.20 lots. If the stop is hit, the loss is about $100 before costs.
Risk comes from the stop, not from leverage
Leverage only decides how much margin the broker holds. The amount you can lose is decided by lot size and stop distance. A wider stop needs a smaller position for the same risk.
The result is rounded down to 0.01 lots so that the real risk never exceeds your chosen amount. Spread, slippage and gaps can still make a loss larger than planned.
Default contract specifications used
| Instrument | 1 lot | Pip size | Value of 1 pip per lot |
|---|---|---|---|
| Gold (XAU/USD) | 100 oz | 0.1 | $10.00 |
| Silver (XAG/USD) | 5,000 oz | 0.01 | $50.00 |
| WTI crude oil | 1,000 barrels | 0.01 | $10.00 |
| Brent crude oil | 1,000 barrels | 0.01 | $10.00 |
| Natural gas | 10,000 MMBtu | 0.001 | $10.00 |
| Copper | 25,000 lb | 0.0005 | $12.50 |
| Platinum (XPT/USD) | 50 oz | 0.1 | $5.00 |
| Palladium (XPD/USD) | 100 oz | 0.1 | $10.00 |
Typical values, not offered by us. Always confirm with your own broker or exchange.
Frequently asked questions
What percentage should I risk per trade?
There is no correct answer. Many educators suggest keeping it at or below 1 to 2 percent of the account so that a losing streak does not do serious damage. It is your decision and depends on your tolerance for loss.
Does leverage change my position size?
No. Leverage changes the margin needed to open the position, not the loss if the stop is hit.
What if the result is below 0.01 lots?
The risk amount is too small for the minimum trade size at that stop distance. Reduce the stop distance, accept more risk, or choose a smaller instrument.
Does this work for sells too?
Yes. If your stop loss is above your entry price the calculator treats the trade as a sell.
Related
Risk reward calculatorMargin calculatorStop loss and position sizingLive oil prices
Educational calculator, not investment advice. Leveraged products such as CFDs carry a high risk of losing money quickly. Prices are indicative. Terms.