How to calculate the position lot based on the entry level?

<p id="isPasted">To calculate the position lot based on entry level, you need to determine the risk you're willing to take per trade and the potential loss (stop-loss) in pips. You'll then divide your risk amount by the risk per pip, which is the pip value multiplied by the stop-loss in pips.&nbsp;</p><p><strong>1. Determine your risk per trade:</strong></p><p>Decide what percentage of your total trading capital you're comfortable risking on a single trade.</p><p>This percentage represents your risk tolerance and should be based on your risk appetite and capital.&nbsp;</p><p><strong>2. Calculate the risk per pip:</strong></p><p>Find the pip value:</p><p>This is the amount of money you'll gain or lose for every 1 pip movement of the price. It depends on the currency pair, lot size, and the current exchange rate.&nbsp;</p><p>Multiply the pip value by your stop-loss:</p><p>This gives you the potential loss in your account currency if the trade moves against you.&nbsp;</p><p><strong>3. Calculate the position lot:</strong></p><p>Divide your risk amount by the risk per pip: This will give you the appropriate lot size to trade.</p><p>Lot Size = (Risk Amount) / (Stop Loss in pips * Pip Value)&nbsp;</p><p>Example:</p><p>Let's say you're trading EURUSD, you want to risk 2% of your $10,000 account, and your stop-loss is 50 pips.&nbsp;</p><p>Risk Amount: $10,000 * 0.02 = $200</p><p>Pip Value (for EURUSD): (Assuming a standard lot) $10</p><p>Risk per pip: 50 pips * $10 = $500</p><p>Lot Size: $200 / $500 = 0.40 lot</p><p>Therefore, you should trade a position size of 0.40 lots to risk 2% of your account with a 50-pip stop-loss.&nbsp;</p>