Simple Lot Size Calculator using Excel (Only 3 Inputs!)

[Joe_Ng]

Firstly, a “well done” award to Babepips for a great effort! Even if a better version of the tool [I]does [/I]already exist on this site, it is always good practice to try building these types of tools oneself on, e.g. excel as it really helps in understanding what are the actual mechanisms are.

The reason why leverage is not included, IMHO, is because this tool is concerned with your equity risk in currency units and is using the pip value per micro lot to calculate how many lots x pip value x stoploss size = your risk percentage in currency units. Leverage does not affect the pip size per lot. The effect of leverage is to determine how much [I]margin [/I]your broker is going to require if you open that many lots. This is, of course, a valid issue - but a different issue.

Thanks manz. Question if all variables in babypips’s position size calculator remain the same. And let says investor x have a leverage of 1:10 whereas investor y have a leverage of 1:100. What does that mean . Mind to give some example ? Investor x would be able to tank more when compared to investor y before getting a margin call?
Joe