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Lesson 4 of 10 · Beginner
How do you size a trade from your stop and risk?
By MFC Research · rules current as of 3 Oct 2026
Decide the money you are willing to lose, measure the distance to your stop, and divide the first by the second. The result is the position size. Leverage changes how much margin you use, not how much you risk.
The two inputs
Risk in money: a fixed share of the account, for example 0.5% of $10,000 = $50. Stop distance: where the trade is proven wrong, measured in pips or points. Everything else follows from these two.
The formula
Position size = risk in money ÷ (stop distance × value per pip or point). On EURUSD a standard lot is worth about $10 per pip. With $50 of risk and a 25-pip stop: $50 ÷ (25 × $10) = 0.20 lots. Widen the stop to 50 pips and the size halves to 0.10 lots; the money at risk stays $50.
Leverage is not risk
Leverage decides how much margin a position needs: 1 on the 1-Step, 1 on the 2-Step and 1 on Instant Funded for forex. It does not change what you lose if the stop is hit. Sizing from the stop keeps the risk the same whatever the leverage.
Check it against the daily limit
Before the order goes in, compare the planned loss with your daily room. On a $10,000 1-Step the whole day may lose $500; a $50 risk per trade allows several losing trades before you reach your personal stop for the day.
Check yourself
Accounts are simulated and use real market quotes. Rules shown here come from the help center; your program terms apply.
