Forex Position Size Calculator

A Forex Position Size Calculator is a computer program that calculates how many units of currency to trade in order to meet a certain profit target or exit criteria. Depending on the trader's preferred style of trading, Forex Position Size Calculators can be either subjective and discretionary or objective and systematic.

Subjective and Discretionary Forex Trading: Forex Position Size Calculators in Forex trading are most often used by discretionary or subjective traders. A Forex Position Size Calculator for discretionary Forex traders will be based on the trader's account size, risk per trade, and desired rate of return. The results of this Forex Position Size Calculator is subject to change during live market action based on changes in the Forex trader's risk tolerance and Forex market conditions.

Objective and Systematic Forex Trading: Forex Position Size Calculators in Forex trading are most often used by systematic or objective traders. A Forex Position Size Calculator for objective Forex traders will be based on the desired position size, trade frequency, and expected rate of return. Forex Position Size Calculators based on account size and desired rate of return are irrelevant as Forex traders using Forex position sizing methods based on a percentage of their trading capital cannot risk more than 100% of the total value of their Forex trading account. The results from a Forex Position Size Calculator used by an objective Forex trader are static and will not change during Forex market action. Forex traders who use Forex Position Size Calculators for objective Forex trading may find Forex brokers like RoboForex offer Forex Position Size Calculator tools as part of their MetaTrader4 (MT4) or cAlgo platforms.

Putting it all together: Traders who Forex trade using Forex position sizing methods that are highly subjective or discretionary should use Forex Position Size Calculators based on their account size and Forex market conditions. Traders who Forex Trade using Forex position sizing methods that are static or objective should opt to use a Forex broker's built-in Forex Position Size Calculator.