Updated
How the lot of a signal is calculated
The lot is not something to guess, and it should not come from the channel. It comes from three numbers: how much you accept to lose, how far the stop is, and how much the price moving one unit is worth on one lot.
Lot = risk ÷ (stop distance × contract size × conversion to your account currency)
The contract size is how many units one lot holds: 100,000 for forex, 100 ounces for gold, 5,000 for silver at most brokers.
Example: gold
Balance 1,000 USD, risk 1 % = 10 USD. The signal says XAUUSD buy at 4085 with the stop at 4075.
- Stop distance: 10 USD.
- On one lot: 10 × 100 oz = 1,000 USD.
- Lot: 10 ÷ 1,000 = 0.01 lots.
Example: EURUSD
Same 10 USD of risk. Buy at 1.0850, stop at 1.0820: 30 pips.
- On one lot: 0.0030 × 100,000 = 300 USD.
- Lot: 10 ÷ 300 = 0.033, which rounds down to 0.03 (it risks 9 USD). Rounding up would risk more than you set.
Example: USDJPY, a pair priced in yen
The loss comes out in yen and has to be converted. Buy at 150.00, stop at 149.50: 50 pips.
- On one lot: 0.50 × 100,000 = 50,000 JPY, which at the stop price is 50,000 ÷ 149.50 = 334.45 USD.
- Risking 10 USD: 10 ÷ 334.45 = 0.0299, which rounds down to 0.02 lots.
For crosses such as EURGBP or GBPJPY the calculator asks for the price of the pair that turns the result into your account currency (GBPUSD, USDJPY…), because that rate is not in the signal.
Position size calculator, without a signal
Switch to Classic calculator to size any trade the usual way: pick the pair, type the stop loss in pips (points for indices and crypto), your balance and your risk. It works for accounts in USD, EUR, GBP, JPY, AUD, CAD, CHF, NZD, MXN, BRL and ZAR.
The pip value
The pip value is what one pip is worth on one lot. On pairs quoted in dollars it is 10 USD per lot, or 0.10 USD per 0.01 lots; on gold, with a pip of 0.10, it is also 10 USD per lot. Multiply it by the stop in pips and by the lot and you have the risk. The calculator shows it for every symbol.
Why the lot should not come from the channel
The channel does not know your account. "0.10 lots" or "strong entry" means 1 % for someone with 10,000 USD and 10 % for someone with 1,000. Copy the levels, not the size: the lot always comes from your rule. More in risk per trade or fixed lot.
The minimum lot and small accounts
Brokers rarely allow less than 0.01 lots. On a small account with a wide stop, the exact lot can be below that, and then the minimum lot already risks more than you wanted. The calculator tells you when that happens, so you decide with the real figure in front of you.
Partial closes: how many TPs your lot can take
Closing part of the trade at TP1 and the rest at TP2 needs a lot big enough to split: 0.01 cannot be split, 0.02 splits in two, 0.03 in three. With a smaller lot those partial closes simply never happen. We explain the thresholds in partial closes on signals.
Gold is different
Gold moves fast, every broker names it differently (XAUUSD, XAUUSDm, GOLD) and one lot is 100 ounces, so each dollar the price moves is a dollar per 0.01 lots. The full guide: copy gold signals to MT5.