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How to Calculate Your Trade Lot Size
Conclusion:To risk only 2% ($100) of your $5,000 account on a trade with a 30-pip stop loss, you should place a trade of 0.33 lots$BIO
Quick Reference Table for Risk %
This table helps you quickly see the formula for different risk levels.
|Risk% Formula
1% (Balance × 0.01) ÷ (SL × Pip Value)
2% (Balance × 0.02) ÷ (SL × Pip Value)
3% (Balance × 0.03) ÷ (SL × Pip Value)
Key Takeaways:
Universal Use: This formula works for Forex, Gold (XAU/USD), Cryptocurrencies, and Indices. However, you must always confirm the correct pip value with your broker, as it can differ for exotic pairs, cryptos, and indices.