Prop Firm Position Size Calculator

How do I calculate position size for a prop firm account?

Divide your dollar risk per trade by your stop loss distance in dollar terms. Dollar risk = account size × risk %. Stop loss in dollars = stop loss pips × pip value per lot. The result is your position size in lots.

What percentage should I risk per trade on a prop firm challenge?

Most experienced traders risk 0.5% to 1% per trade during prop firm challenges. At 1% risk with a 3% daily drawdown limit, you have 3 losing trades before the day is over - giving you enough room without risking the account in one session.

What is pip value and how does it affect my position size?

Pip value is how much 1 pip of movement is worth per lot. For most major USD pairs (EUR/USD, GBP/USD) trading a standard lot, 1 pip = $10. If your stop is 20 pips and you want to risk $500, you need 500 ÷ (20 × 10) = 2.5 lots.

How does daily drawdown limit affect how many trades I can take?

If your daily limit is 3% of a $100,000 account = $3,000 and you risk 1% ($1,000) per trade, you can take a maximum of 3 losing trades before breaching the daily limit. This calculator tracks that for you in real time.