Lot Size Calculator(Risk Calculator)
Forex traders use lot size calculator to determine maximum risk of each trade. This calculator tells you what lot size a trader should use in a specific trade.
How Does Risk Calculator Work?
Let’s say Sarah, a forex trader, has 2200 dollars in her broker account. She risks 2% of her account balance (2200 * 2% = 44 $) in each trade. At this time, she is going to open a trading position on AUD/CAD.
Stop loss rate is 200 pips far from open price and USD/CAD rate is 1.3463
Right now, what is the suitable lot size for this trade that Sarah in a case of loss will not miss more than 2 % of her account balance?