How the Contract Size Calculator Works
Enter your account size, risk percentage, currency pair, lot type, entry price, and stop loss price. The calculator computes your stop in pips, the pip value for your chosen lot type, and the number of lots needed to risk exactly your target dollar amount.
Frequently Asked Questions
What is contract size in forex trading?
Contract size is the number of currency units in one lot. A standard lot = 100,000 units, a mini lot = 10,000 units, a micro lot = 1,000 units. Contract size directly determines how much each pip is worth.
How do I calculate the number of lots to trade?
Lots = (Account × Risk%) / (Stop loss in pips × Pip value per lot). For example: $10,000 account, 1% risk, 20-pip stop, mini lot (pip value $1) → Lots = $100 / (20 × $1) = 5 mini lots.
What is pip value and how is it calculated?
Pip value = Lot size × Pip size. For EUR/USD (pip size 0.0001) with a standard lot (100,000 units): pip value = 100,000 × 0.0001 = $10. For a mini lot: 10,000 × 0.0001 = $1. For a micro lot: 1,000 × 0.0001 = $0.10.
What is dollar risk per pip?
Dollar risk per pip is how much money you gain or lose for each pip the market moves. It equals the number of lots multiplied by the pip value per lot. Trading 2 mini lots of EUR/USD means each pip is worth $2.
How does lot type affect position size?
Smaller lot types allow more precise sizing for smaller accounts. A micro lot of EUR/USD has a pip value of $0.10, letting a $1,000 account risk 1% ($10) across a 100-pip stop loss. Standard lots require much larger accounts for the same risk level.
What pip size should I use for JPY pairs?
JPY pairs like USD/JPY and EUR/JPY use a pip size of 0.01 (not 0.0001). A standard lot of USD/JPY has a pip value of approximately $9–$10 depending on the current USD/JPY rate.
Can I use this calculator for futures contracts?
Yes. Enter the contract unit size in the lot size field, the contract tick size as pip size, and tick value as the pip value equivalent. The calculator outputs the number of contracts based on your risk parameters.
What is total risk in dollars?
Total dollar risk = Number of lots × Stop loss in pips × Pip value per lot. This should match your target dollar risk (account × risk%). The calculator verifies these numbers match so you trade the correct size.
Related Calculators
To look up pip values for any pair, use the pip value calculator. For a universal stock, forex & crypto sizing tool, see the position size calculator. Learn more in the forex contract size guide.