The formula
Lot size = risk amount / (stop distance in pips x pip value per 1.00 lot)
If you risk $10, use a 10 pip stop and the pip value is $10 per standard lot, the result is 0.10 lots.
Step by step
- Choose account balance and risk percent, or type a fixed risk amount.
- Enter the entry price and stop loss price.
- Convert the price difference into pips using the pair's pip size.
- Divide risk amount by stop distance and pip value.
The Pips web calculator does those steps instantly for the 10 forex pairs included on the site.
Why the pip value matters
Pip value changes when the quote currency is different from your account currency. For example, EUR/USD in a USD account is straightforward, while EUR/GBP in a USD account needs a currency conversion.
The app is useful when you want this flow one tap away during live trading.