LOT SIZE & RISK · INSTITUTIONAL
POSITION SIZING
LOT SIZE &
RISK MANAGEMENT
THE FOUNDATION OF EVERY TRADE
Lot size determines how much you risk per pip. Get this right and a small account can grow systematically.
THE THREE LOT SIZES
MICRO
0.01
Beginners
$100–$1K
MINI
0.10
Intermediate
$1K–$10K
STANDARD
1.00
Experienced
$10K+
Gold is more volatile than forex. Always use smaller lot sizes on gold vs EUR/USD for the same account size.
CAPITAL vs LOT vs PIP VALUE
CAP LOT 1 PIP 10 PIPS 20 PIPS 30 PIPS
$1000.01$0.10$1.00$2.00$3.00
$5000.05$0.50$5.00$10.00$15.00
$1K0.10$1.00$10.00$20.00$30.00
$5K0.50$5.00$50.00$100.00$150.00
$10K1.00$10.00$100.00$200.00$300.00
$50K5.00$50.00$500.00$1000.00$1500.00
$100K10.00$100.00$1000.00$2000.00$3000.00
AT 1:100 LEVERAGE
THE 1–2% RISK RULE
NEVER RISK MORE THAN
2% PER TRADE
$500 ACCOUNT → MAX RISK$10
$1,000 ACCOUNT → MAX RISK$20
$5,000 ACCOUNT → MAX RISK$100
$10,000 ACCOUNT → MAX RISK$200
This rule keeps you in the game through losing streaks. 50 losses at 2% = still 36% of account remaining.
BROKER LEVERAGE EXPLAINED
Same $1,000 account. Different leverage. Different lot size available.
1:100
Conservative — beginners
0.01 lot
$1.00/pip
1:500
Moderate — intermediate
0.05 lot
$5.00/pip
1:1000
High risk — experienced only
0.10 lot
$10.00/pip
YOU DECIDE YOUR RISK. BASE IT ON YOUR EXPERIENCE.
LOT SIZE CALCULATOR
ENTER YOUR CAPITAL
$
BROKER LEVERAGE
YOUR LOT SIZE OPTIONS
🎯 = YOUR $3 TARGET (30 PIPS) · YOU DECIDE YOUR RISK
KEY TAKEAWAYS
01
Three lot sizes: Micro 0.01, Mini 0.10, Standard 1.00. Match to account size.
02
Never risk more than 1–2% per trade. $1,000 account = $20 max risk.
03
Gold more volatile than forex. Use smaller lots on gold vs EUR/USD.
04
Higher leverage = bigger lots = higher risk. You decide based on experience.
05
Your 30 pip target — use the calculator to know exactly what that earns you.
USE THE CALCULATOR ON SLIDE 6 BEFORE EVERY TRADE
IS TRADING REAL
Position sizing is not
a risk management tool.
It is a survival tool.
Master it before
everything else.
— Lot Size & Risk
USE THE CALCULATOR BEFORE EVERY TRADE
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