Most traders learn position sizing for one market and struggle when they switch to another. A forex trader moves to futures and doesn’t know how many contracts to buy. A futures trader tries forex and doesn’t know what a pip is worth. The underlying formula is identical across all markets — only the unit name and conversion factor changes.
The Universal Position Sizing Formula
Dollar Risk = Account Balance × (Risk % ÷ 100)
Stop in Units = |Entry − Stop Loss| ÷ Unit Size
Position Size = Dollar Risk ÷ (Stop in Units × Value per Unit)Every market has a “unit” (pip, tick, point, cent) and a “value per unit” (how many dollars each unit movement is worth per standard position size). Once you know those two numbers for your instrument, the formula works identically.
The Master Unit Value Table
| Market | Instrument | Unit | Unit Size | Value per Unit (1 standard lot/contract) |
|---|---|---|---|---|
| Forex | EUR/USD | Pip | 0.0001 | $10.00 |
| Forex | GBP/USD | Pip | 0.0001 | $10.00 |
| Forex | USD/JPY | Pip | 0.01 | ~$7.00 |
| Forex | AUD/USD | Pip | 0.0001 | $10.00 |
| Forex | USD/CHF | Pip | 0.0001 | ~$10.00 |
| Metals | XAUUSD (Gold CFD) | Pip | 0.01 | $10.00 |
| Metals | XAGUSD (Silver CFD) | Pip | 0.001 | $5.00 |
| Indices | NAS100 (CFD) | Point | 1.0 | $1.00 |
| Indices | US30 (CFD) | Point | 1.0 | $1.00 |
| Indices | SPX500 (CFD) | Point | 1.0 | $1.00 |
| Futures | ES (S&P 500) | Tick | 0.25 pts | $12.50 |
| Futures | NQ (Nasdaq) | Tick | 0.25 pts | $5.00 |
| Futures | MES (Micro S&P) | Tick | 0.25 pts | $1.25 |
| Futures | MNQ (Micro Nasdaq) | Tick | 0.25 pts | $0.50 |
| Futures | CL (Crude Oil) | Tick | $0.01/bbl | $10.00 |
| Futures | GC (Gold) | Tick | $0.10/oz | $10.00 |
| Crypto | BTCUSD | Point | 1.0 | $1.00 (varies by broker) |
| Crypto | ETHUSD | Point | 1.0 | $0.10 (varies) |
Values shown per standard lot (forex CFDs) or per full contract (futures). Always verify with your specific broker.
Worked Examples Across 4 Markets
All examples: $50,000 account, 0.5% risk ($250), comparable stop distances.
Example 1: Forex — EUR/USD
Stop: 50 pips | Unit value: $10.00
Dollar Risk = $250
Stop in units = 50 pips
Position Size = $250 ÷ (50 × $10) = 0.50 lotsExample 2: Metal — XAUUSD (Gold CFD)
Stop: 150 pips (gold $0.01 pip) | Unit value: $10.00
Dollar Risk = $250
Stop in units = 150 pips
Position Size = $250 ÷ (150 × $10) = 0.17 lotsExample 3: Index Futures — ES (E-mini S&P 500)
Stop: 4 points = 16 ticks | Tick value: $12.50
Dollar Risk = $250
Stop in ticks = 16
Position Size = $250 ÷ (16 × $12.50) = $250 ÷ $200 = 1.25 → 1 contractExample 4: Crypto — BTCUSD
Stop: $500 below entry | Unit value: $1.00 per point per lot (broker-specific)
Dollar Risk = $250
Stop in units = 500 points
Position Size = $250 ÷ (500 × $1) = 0.50 lotsThe formula, the risk %, and the dollar risk are identical across all four examples. Only the unit value and stop distance change.
Building the Universal Sizing Checklist
Before any trade in any market, answer these 5 questions:
1. What is my dollar risk? Balance × risk % = dollar amount. Write it down.
2. What is the unit of measurement for this instrument? Pip (forex), tick (futures), point (index CFDs), cent (some commodities).
3. What is the value per unit per standard position? From the master table above, or from your broker’s instrument specification.
4. How many units is my stop loss? |Entry − Stop| ÷ unit size. For pips: divide by 0.0001 (or 0.01 for JPY/gold).
5. What is the position size? Dollar risk ÷ (stop units × unit value) = lot size or contract count.
Five questions, one formula, works for everything.
Why Market-Specific Calculators Exist
The universal formula requires you to know the unit value for each instrument — and these vary by broker, leverage setting, and instrument type. A general formula is useful conceptually; a pre-loaded instrument calculator eliminates the lookup step.
The TRADE90 position size calculator pre-loads unit values for 45+ instruments including forex majors, gold, silver, NAS100, US30, SPX500, and major crypto. Enter your balance, risk %, and stop — the correct unit value is applied automatically.
Portfolio Sizing: Multiple Markets at Once
When trading multiple instruments simultaneously, total portfolio risk is the sum of all open trade risks.
Example: $100,000 account with 3 simultaneous open trades:
- EUR/USD long: 0.5% risk = $500
- XAUUSD long: 0.5% risk = $500
- NAS100 short: 0.5% risk = $500
- Total open risk: $1,500 (1.5% of account)
This is within a 3% total portfolio risk limit (standard professional rule). But note the correlation: EUR/USD long and XAUUSD long both tend to rally when USD weakens. Effectively this is 1.5× exposure to USD weakness, not 3 independent positions.
For funded accounts, apply the Trade90 Safety System daily cap: maximum 1% total risk across ALL open positions. Two trades at 0.5% each is the daily limit.
Instrument Class Comparison
| Market Class | Typical Unit Value | Typical Stop Size | Typical Lot/Contract | Position Flexibility |
|---|---|---|---|---|
| Forex (major pairs) | $10/pip | 30–100 pips | 0.10–2.00 lots | High (0.01 increments) |
| Metals (CFD) | $10/pip | 80–300 pips | 0.05–1.00 lots | High |
| Index CFDs | $1/point | 50–300 points | 1–10 lots | High |
| E-mini Futures | $5–$12.50/tick | 10–100 ticks | 1–10 contracts | Low (whole numbers) |
| Micro Futures | $0.50–$1.25/tick | 10–100 ticks | 1–20 contracts | Medium |
| Crypto CFD | $1/point (approx) | 200–2,000 pts | 0.10–5.00 lots | High |
Frequently Asked Questions
Is there one position sizing formula for all markets? Yes. Dollar Risk ÷ (Stop Units × Unit Value) = Position Size. The unit and unit value change by instrument; the formula structure does not.
How does position sizing differ between forex and futures? Forex uses pips and lots. Futures use ticks and contracts. The math is identical — tick value replaces pip value, contract count replaces lot size.
Can I use the same risk % for all instruments? Yes. Risk % is account-relative (0.5% of $50,000 is $250 regardless of what you’re trading). The position size adapts automatically to the instrument’s unit value.
What is the universal position sizing formula? Position Size = (Account Balance × Risk %) ÷ (Stop Distance in Units × Unit Value per Standard Position).
How do I size crypto positions? The formula is the same, but unit values vary by broker (spot vs CFD vs perpetual futures). Check your broker’s contract specification. Most retail crypto CFDs use $1 per point per lot.