Risk Management

Position sizing without spreadsheets

The right position size is whatever makes your stop-loss equal to your intended risk. That's the whole formula. Everything else is just arithmetic.

8 min read

The formula

Position size = (Account × Risk%) ÷ (Stop distance in pips × pip value).

A worked example

£10,000 account, 1% risk = £100. Stop of 25 pips on EUR/USD at roughly £8 per pip per standard lot = £100 ÷ (25 × £8) = 0.5 lots.

Do it before you enter

Never open a trade and then work out what your stop should be so the loss feels bearable. Set the stop first, size the trade to match.

Educational content. MySmartFXSignals provides decision-support and education. Nothing here is financial advice or a trading recommendation. Trading FX carries significant risk of loss.

Related guides

Understanding risk managementWhy protecting capital matters more than making money — position sizing, stops, risk-reward and the habits that keep you in the game.
Why stop placement mattersStop placement is a structural decision, not a comfort decision. Where the stop sits matters far more than how tight it is.
Planning for drawdownLosing streaks are inevitable — how to expect them, cap them, and recover gradually instead of blowing up.

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