A lot of traders get this wrong, so let's simplify it 👇
👉 Lot Size = Risk ($) ÷ (Stop Loss in pips × Pip Value per lot)
💡 Example (EURUSD Sell Trade):
Risk = $10
Stop Loss = 10 pips
Pip Value (1 standard lot) = $10 per pip
👉 Lot Size = 10 ÷ (10 × 10)
👉 Lot Size = 10 ÷ 100 = 0.10 lots
📌 Key Thing to Understand:
On EURUSD:
1 lot = $10 per pip
0.10 lot = $1 per pip
0.01 lot = $0.10 per pip🎯 My Advice:
Always use a lot-size calculator app for speed and accuracy.
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