ٹریڈنگ میں سب سے اہم مہارت یہ ہے کہ ہر ٹریڈ میں کتنا رسک لیا جائے۔ اس مضمون میں ہم ایک آسان فارمولے سے لاٹ سائز نکالنا سکھائیں گے، تاکہ اسٹاپ لاس لگنے پر بھی آپ کا نقصان اکاؤنٹ کے صرف ایک یا دو فیصد تک محدود رہے۔ ساتھ میں ٹیک پرافٹ، رسک ٹو ریوارڈ اور بریک ایون کا طریقہ بھی بیان کیا گیا ہے۔
Ask a group of experienced traders what matters most and many will not say “a good strategy”. They will say risk management. A good entry with the wrong lot size can still empty your account, while an average strategy with disciplined risk can survive long enough to improve. This guide shows how to choose your lot size from your stop loss, step by step, with real numbers for forex and gold.
The 1% rule
Decide in advance the most you are willing to lose on one trade, as a percentage of your account. For most traders that should be 1%, and never more than 2%.
Why so small? Because losing streaks are normal. Even a good strategy can lose five or six trades in a row. Risking 1% per trade, six losses cost you about 6% of your account. Risking 10% per trade, the same streak takes almost half of it, and you need nearly a 90% gain just to get back to where you started.
Step 1: place your stop loss first
Your stop loss belongs where your trade idea is proven wrong, not at a random number of pips. For a buy, that is usually just below the last clear swing low or support level; for a sell, just above the last swing high or resistance. Our guide to market structure explains how to find these levels.
Only after the stop is placed do you choose the lot size. A wide stop means a smaller lot; a tight stop allows a larger one. Either way, the money at risk stays the same.
Step 2: calculate the lot size
The formula is the same for every market:
Lot size = Money at risk ÷ (Stop-loss distance × Value of that distance for 1 lot)
Example 1: EUR/USD
- Account: $1,000. Risk 1% = $10.
- Entry 1.0850, stop loss 1.0825: distance 25 pips.
- 1 pip on 1 standard lot of EUR/USD is about $10.
- Lot size = 10 ÷ (25 × 10) = 0.04 lot.
If the stop is hit, you lose about $10, which is exactly 1% of the account.
Example 2: gold (XAU/USD)
- Account: $1,000. Risk 1% = $10.
- Sell at 4180, stop loss 4185: distance $5.
- 1 standard lot of gold is usually 100 ounces, so a $1 move is worth $100 per lot.
- Lot size = 10 ÷ (5 × 100) = 0.02 lot.
If the result is not a size your broker allows (for example 0.025), round down, never up. Gold contract sizes can differ between brokers, so check yours once in the contract specification.
Step 3: set your take profit and check the risk-to-reward
Risk-to-reward (R:R) compares what you can lose with what you aim to make. With a $5 stop and a $10 target, the R:R is 1:2. The better your R:R, the fewer trades you need to win to stay profitable:
| Risk-to-reward | Win rate needed just to break even |
|---|---|
| 1:1 | 50% |
| 1:1.5 | 40% |
| 1:2 | 33% |
| 1:3 | 25% |
Put your target before the next strong support or resistance level, not in the middle of nowhere. If the nearest sensible target gives you less than 1:1, the trade is usually not worth taking.
Multiple targets and moving the stop to breakeven
Many traders split one idea into several targets (TP1, TP2, TP3). A common plan:
- Close part of the position at TP1 to lock in some profit.
- Move the stop loss to your entry price (breakeven), so the rest of the trade can no longer lose money.
- Let the remainder run to TP2 and TP3, moving the stop behind price as it goes if the plan says so.
Remember to size the whole position with the 1% rule first. Splitting it into targets does not change the risk at the start.
Risk mistakes that empty accounts
- No stop loss, or a “mental” stop that is never actually used.
- Moving the stop further away when price comes close to it.
- Adding to a losing trade to “average down”.
- Doubling the lot size after a loss to win it back quickly.
- Opening several trades on related markets (for example gold and silver in the same direction) and forgetting that the risk adds up.
Your checklist before every trade
- Where exactly is my stop loss, and why there?
- How much money is 1% of my account today?
- What lot size does the formula give, rounded down?
- Is my first target at least as far as my stop (1:1 or better)?
- Is there big news in the next hour?
Frequently asked questions
What lot size should I use for a $100 account?
With 1% risk you can lose about $1 per trade. On gold with a $5 stop that is 1 ÷ (5 × 100) = 0.002 lot, which is below most brokers’ minimum of 0.01. In that case either find a wider-stop setup on a smaller market, accept that you cannot follow the rule on gold yet, or keep practising on demo until the account is larger.
Is 2% risk too much?
2% is the upper limit most professionals accept. While you are still learning, 0.5% to 1% gives you more room to make mistakes and recover.
Learn it properly
Risk management is part of every lesson in our Forex Online Course and our in-person classes in Lahore. Every trade in VIP Signals comes with a clear stop loss and targets, so you can apply this exact formula before you enter.
This article is for education only and is not financial advice. The numbers above are examples. Pip values and contract sizes vary by broker and instrument; always check yours.