Atlas · Risk management
From a trading scenario to position size
Trade direction and position size solve different problems. Analysis defines entry conditions and scenario invalidation, while sizing connects the stop loss to the percentage of your account you are willing to risk.
Risk first, size second
Start with your account balance and risk allowance per trade. With a balance of 10 000 USD and risk of 1%, the planned loss before costs should not exceed 100 USD. This is the starting risk amount, not margin or the total position value.
Set the stop loss using market conditions and scenario invalidation. Then size the position for that stop. A wider stop requires a smaller position at the same risk. Moving the stop closer simply to increase volume changes the original trading plan.
Calculation formula
Risk amount equals account balance multiplied by the risk percentage and divided by 100. To calculate standard lots, divide this amount by stop distance in pips multiplied by the value of one pip per standard lot in the account currency.
Lots = risk amount / (stop in pips × pip value per 1 lot)
For the listed currency pairs, a standard lot is 100 000 units of the base currency. A mini lot is 10 000 units and a micro lot is 1 000. These are different ways of expressing the same volume, not additional positions.
Example: EUR/USD and a USD account
Account balance: 10 000 USD, risk: 1%, stop at 50 pips. One EUR/USD pip is 0,0001 USD per EUR, so a standard lot has a pip value of 10 USD.
Risk amount: 10 000 × 1 / 100 = 100 USD. Position size: 100 / (50 × 10) = 0,20 lots, or 20 000 EUR. The same size is 2 mini lots or 20 micro lots. At a 0,01 lot step, rounding does not change the result. The 1% risk is an example assumption, not a risk recommendation.
Pips and account currency
For the selected non-yen pairs, one pip is 0,0001; for pairs quoted in JPY it is 0,01. A terminal may show another decimal place: that smallest tick is not a full pip. For example, a EUR/USD move from 1,1000 to 1,0950 is 50 pips.
Pip value is initially expressed in the quote currency, the second currency of the pair. If your account uses another currency, enter the conversion rate: account currency units per quote currency unit. For EUR/USD with an EUR account, use USD → EUR. The calculator uses your entered rate and does not fetch live quotes.
Rounding and calculation limits
Position size is rounded down to the lot step so the calculated stop risk does not exceed your allowance. Results show the allowed risk and the risk after rounding separately. Check minimum volume, volume step and maximum size in your broker specifications.
The calculator covers the listed currency pairs. Gold, index, futures and other contract sizes can differ. It excludes commissions, spread, slippage and margin requirements. Stop losses do not guarantee execution at the specified price, so actual losses can differ from the plan.
Position size and R:R in one plan
Risk/reward measures the proportion between stop and target. Position size determines the cash risk of the idea. In the Atlas approach, both calculations complement market structure analysis: define the scenario first, then assess R:R and size the position for your account risk allowance.
Calculate risk/reward →