How much should you risk per trade?

The short answer

A common rule is to risk a small fixed share of your account on each trade, often 1% or less, so a losing streak cannot wipe you out. Your position size then comes from that risk and your stop loss: position size equals the amount you are willing to lose divided by the distance to your stop. AlgoBars calculates it for you with a free lot size calculator, or automatically with auto position sizing.

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Last updated September 25, 2026

Worked example

Account: $10,000. Risk 1%: $100.
Stop loss is 50 pips away on EUR/USD, where 1 standard lot moves about $10 per pip.
Size = $100 / (50 pips × $10) = 0.2 lots.

Why a small fixed risk works

Risk per trade	Account left after 10 losses in a row
1%	About 90%
2%	About 82%
5%	About 60%
10%	About 35%

Good to know

Trading involves significant risk of loss. Nothing here is financial advice, and past or backtested results do not guarantee future results.

Next steps

Free lot size calculator

Frequently asked questions

How much should I risk per trade?

Many traders risk 1% or less of their account per trade.

How do I calculate position size?

Divide the amount you are willing to lose by the distance to your stop loss, in money per unit.