How to Calculate Lot Size for Prop Firms
Trading with a Prop Firm like FTMO or FundedNext requires strict adherence to risk rules. unlike personal accounts, you have hard drawdown limits (usually 5% daily and 10% max).
A standard lot size calculator isn't enough. You need to understand how your stop loss distance interacts with your account balance to ensure a single losing trade doesn't cost you your challenge.
The Golden Rule
"Never risk more than 1% of your initial balance on a single trade setup."
Why Risk Percentage Matters
If you have a $100,000 account, a 1% risk is $1,000. If your Stop Loss is 10 pips, you can trade significantly larger size than if your Stop Loss is 50 pips. This dynamic position sizing is the secret to consistent growth without hitting drawdown limits.
Indices vs Forex
Calculating lots for US30 or NAS100 is different from EURUSD. Most prop firms use different contract sizes. Our calculator approximates these values, but always double check your broker's contract specification.
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