I wanted to run by the Position Size formula I am using, and to make sure I am calculating my Position Size correctly

EUR/USD Example:
Account Size = $3,000
Risk per trade = 3%
Amount can risk per trade = $90

Entry = 1.3051
Stop = 1.3021
Risk on the trade ( in Pips ) = 30 pips

30 pips x .10 cents ( Micro Lot ) = $3

$90 divided by ( 30 pips x …10 cents = $3 ) = 30 micro Lots

So given this Position Size formula , you could trade 30 Micro Lots ( or 3 mini Lots ) ?

Just want to double check that i am calculating correctly :slight_smile:

vpd1952 

So given this Position Size formula , you could trade 30 Micro Lots ( or 3 mini Lots ) ?

Yes - you've calculated it correctly - other than maybe in not allowing a pip for the spread(?).

(Hope you won't mind my mentioning that whether as much as 3% risk per trade is advisable is another matter altogether!)

Tymbeline,
Thank you so much for your help

3% risk is a bit to much per trade, I do agree

Yes seems right - But 3% risk is pretty high - try to keep it below 2% preferable 1%

I agree with everything here but I want to add that you also need to know your win/loss %, and win/loss $. For example, if you are risking $1 to make $1 (net of costs) then you need a winning percentage of more than 50% to be long-term profitable.