Calculating Lot Size

Calculating Lot SizeLesson 2 of 124 min read

What the sum needs

Three inputs produce every lot size in trading. Where each one comes from, and why the calculator apps are a check rather than a tool.

Before the formula, the three numbers it eats. If you have these, the answer is arithmetic.

The three inputs

Your account balance. The percent of it you risk on one trade. The distance from your entry to your stop.

That is the whole list. Nothing about the setup, the timeframe or how good the trade looks enters the calculation.

Balance, percent, stop distance. Everything else is derived.

Where each one comes from

The balance is on the platform, and it is the balance today rather than the one you started with.

Register to access everything for free

The course is free. The account is only there to save your place and let us tell you when new lessons land.