How to Calculate Lot Size in Forex
What is Lot Size in Forex?
A lot size represents the number of currency units you trade. Standard lot = 100,000 units, Mini lot = 10,000 units, Micro lot = 1,000 units. For Russia traders, micro lots are ideal for small accounts funded via Skrill or USDT.
The Formula for Lot Size Calculation
Lot Size = (Account Risk %) × Account Balance / (Stop Loss in Pips × Pip Value). Example: You have 100,000 RUB ($1,100 USD at current rate), risk 2%, stop loss 20 pips, pip value $10 for standard lot. Lot Size = (0.02 × 1,100) / (20 × 10) = 22 / 200 = 0.11 lots (or 11 micro lots).
Practical Example for Russia
You deposit $500 via Bank Transfer. You want to trade EUR/USD with a 30-pip stop loss. Pip value for 0.01 lot is $0.10. Risk 1% = $5. Lot Size = 5 / (30 × 0.10) = 5 / 3 = 1.67 micro lots. Use 0.01 lot to stay safe.
Leverage and Margin in Russia
The local financial authority caps leverage at 1:50 for retail traders. This means you need more margin for larger lots. For a standard lot at 1:50, margin = $100,000 / 50 = $2,000. Always keep margin below 20% of your account to avoid margin calls.