# Free Volatility Indices Lot Size Calculator

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Volatility index Lot size calculator
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Proper lot sizing is an essential aspect of risk management for traders, as it helps prevent excessive exposure to market risk.

We have designed the above calculator to help you calculate lot size in US dollar after you provide Stop loss, risk limit and entry price

## How This Calculator Work

This calculator works by using the entry price, stop loss, and risk limit that you provided to calculate the proper lot size you should use in your order to avoid losing more than your risk limit when you are taken out of the market.

It is a common experience among traders that after setting a risk limit, their loss will exceed their risk limit when the trade takes them out of the market. This usually occurs because of the random use of lot size. So if you have experienced this, the power of this lot size calculator is invaluable to you.

Also Read:  How To Open Volatility Indices, Boom & Crash Trading Account

## How to Use this Calculator

Step 1: Select the Index You want to Trade

From the first input option, select the volatility index you want to trade.

Step 2: Input Your Entry Price: Your entry price is the price at which you want to execute your order (buy or sell).

Step 3: Input your stop loss price: Your stop loss price is the price at which you are willing to exit your position. The stop-loss price should be greater than the entry price in a sell order and less than the entry price in a buy order.

Step 3: Enter your risk limit: The risk limit is the maximum amount you want to risk for the particular trade. It is usually calculated by multiplying the account size by the percentage risk limit.

Step 4: Check your result: After you have inputted the value discussed above, your lot size will be displayed in down section of the calculator.

## Formula used to calculate lot size in Volatility indices

For a buy order:

Lot size = entry price – Stop loss/ Risk Limit

For a sell order:

Lot size = Stop loss – entry price/Risk limit