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Handy Tools to Calculate Your Lot Size

11:20 AM Feb 12, 2020
1455
For beginners

I hope you already know that without a well-thought-out risk management system there is no chance you’ll build a career on Forex. Choosing the right lot size is a crucial aspect of this system.

It is quite possible to calculate the lot yourself. Perhaps in another article, we will discuss how to do this. In the meantime, we will talk about a number of tools that will automatically calculate the necessary transaction volume.

Trading Calculator

Perhaps this is the most obvious way. Many brokers have a trading calculator on their websites and FXCL Markets is no exception. This program is quite easy to use. You need to specify several parameters:

  1. Currency pair
  2. Leverage
  3. Account currency
  4. Transaction volume

Once you state the mentioned indicators you’ll get the additional information on your transaction:

  1. Contract size
  2. Spread
  3. Margin
  4. The cost of one pip or point

Knowing the value of a point, you can make the calculations of the required transaction size in lots. Let's say you decide that you are ready to risk 1% of your capital per transaction with a risk-to-reward ratio of 1:3. If your balance is $1,000, then you can risk $10 per trade. If you set Stop Loss at 10 points from the entry price, then the cost of 1 point in your case should be $1. Using the calculator, you will find out that the cost of 1 point will be equal to $1 with a lot size of 0.1 for the EURUSD pair.

Indicators

It is not always convenient to return to the broker's website during trading each time you need to calculate the lot size. If your trades’ settings are constantly changing then it will be much more convenient for you to see the necessary data directly in the trading terminal. There are a few useful indicators for this. They are all easy to use and similar in operation. Let's look at the main ones.

Lot

A very convenient and quite comprehensive indicator. You enter the key indicators of your transaction into the program:

  1. Risk per trade (percent of total capital)
  2. Stop Loss and Take Profit size in pips

The program automatically calculates the following indicators:

  1. Lot size
  2. Potential profit and loss based on SL and TP
  3. The price of a pip in USD

Also, you can choose settings for your indicator, including the color and size of the font and the location of the window in your trading terminal.

ArgoLotCalculator

This program is similar to Lot described above. Well, all the programs on our list will be similar, but I want to provide you with a wide range. This way, you can decide which indicator suits all your preferences.

ArgoLotCalculator shows Stop Loss and Take Profit sizes. The risk volume is based on the SL size. You will see three lines on your chart:

  1. Entry price
  2. Stop Loss
  3. Take Profit

You can move the lines directly on the chart. The data in the indicator, including the required lot size, will change accordingly.

There is an indicator that works in a similar way - PositionSizeCalculator. This program includes even more settings. Depending on what you prefer, simplicity or detail, you can focus on one of these indicators.

Calc File

You can use this indicator to compare several options depending on the given conditions. You can specify three different Stop Loss levels and three different risk levels in percent. The program will calculate the lot size and the cost of 1 point for each of the situations. Later you can choose the best option.

i-UrovenZero

An extremely multi-functional indicator that contains detailed information on each of your transactions, including the lot sizes you need, as well as Stop Out levels and even breakeven levels. I would probably need a separate article to give you a more detailed description of this program. If you need complete information about your account and open transactions at hand, then i-UrovenZero is a perfect tool for this.

Infopanel TSLS_mod1

You can also enter three different parameters in this indicator for comparison. Here you indicate three possible lot sizes and the program will calculate the cost of one point for you. Knowing how much you are willing to spend for 1 transaction, you can choose the required lot size.

The indicator has a large number of functions and settings. It includes a huge variety of trading instruments, including metals.

MAX_LOT

This program is slightly different from others. The indicator takes into account your capital and calculates your maximum lot size based on your leverage.

Other Indicators

Of course, the list of programs does not end there. There are a number of indicators that calculate the lot size for you based on standard data:

  • MaxLot
  • LotCalculator
  • lot size calc
  • lot_profit
  • lot calculator
  • balance %

Final Words

On Forex, the incorrect calculation is a gross mistake of any novice trader. If the size is too high, you can lose tens of times more than you expect. At too low - you can earn at times less than you estimated.

Perhaps with experience, you will calculate all this in your mind but at first, it’s important to use handy tools. Always enter trades wisely. Good luck!

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trading mindset beginners novice traders trading strategy forex trading trading plan broker losses forex mistakes trading habits women in Forex female traders risk management profit trading instruments pairs price advantages of forex leverage FXCL investments copy trading advantages of Forex social trading professional traders trading psychology demo trading buy/sell bid/ask spread Metatrader 4 market analysis technical analysis fundamental analysis trade trading platform Forex trading novice trading dealing with losses charts timeframe indicators MetaTrader 4 trading routine support level resistance level trend low-hanging fruit stop loss loss trading history long-term goals open trade close trade daily charts swing trading intraday trading scalping trading setup Forex traders bullish bearish resistance support MA 200 trend trading professional trading EMA EA daily chart weekly chart Forex news highs lows account type cent trading Mini Micro Cent Partnership commission fees trading terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro canadian dollar japanese yen mexian peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 Coronavirus epidemic macroeconomics markets CNY Bitcoin gold Jerome Powell fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart XAUUSD Chinese yuan flat US Dollar Fed Interest Rates inflation level XPTUSD platinum XAGUSD silver USDCNY Chinese Yuan instruments swap trading hours Buy Stop Sell Stop Average True Range ATR range sideways range price level trading scripts Excel tables entry point equity balance applications highs and lows RSI Fibonacci terminal server proxy OS Windows XP self-trading Forex advantages gap trading Fibonacci levels USDJPY Buy Limit Cherry Blossom market cycle mark-up mark-down consolidation distribution long positions short positions double bottom triple bottom double top triple top pattern signal presidential cycle Elliott wave Kondratiev wave