Proper lot sizing is one of the keys to a good risk management system. When you use a proper lot size in your trades, you will expose your account to less risk in the market.
The calculator above will help you calculate the proper lot size to use in your order to avoid losing more than your risk limit when you are taken out of the market.
How this Calculator work
This boom and crash lot size calculator helps you calculate lot size by using the entry price, the risk limit, and the stop loss price that you give it.
When you use this method to calculate your lot size, it is guaranteed that you will not lose more than your risk limit when you are taken out of the market.
How to use our Boom & crash lot size calculator
Step 1: Select the index you want to trade. Click on the select button and choose the particular index you want to trade.
Step 2: Input Your entry price: The entry price is the price at which you want to place your order.
Step 3: Input your risk limit: The risk limit is the maximum amount you want to risk in your trade. It is calculated by multiplying your account size by your percentage risk limit.
Step 4: Input your stop-loss price. Your stop-loss is the price at which you want to quit your position.
Step 5: Check the result: After you have entered the above values, the calculated lot size will be displayed at the bottom
Formula used to calculate lot size In Boom & Crash
For a buy order:
Lot size = (entry price – Stop loss)/ Risk Limit
For a sell order:
Lot size = (Stop loss – entry price)/Risk limit