The Complete Guide to Forex Position Sizing (2026 Update)
Position sizing is the single most underrated skill in forex trading.
The 2% Rule
Never risk more than 2% of your account on a single trade.
Formula: Position Size = (Account Balance x Risk%) / (Stop Loss in Pips x Pip Value)
Kelly Criterion
f* = (bp - q) / b where b = odds, p = win rate, q = loss rate
Use half-Kelly for safety.
Common Mistakes
- Oversizing - Risking 5%+ per trade
- Ignoring correlation across pairs
- Martingale strategy
Free Tool
Use our Position Size Calculator
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