What if the difference between an account that survives and an account that disappears was not in the analysis, but in a single number — the one you type in the order window? That number is your position size: the quantity you buy or sell on each trade. Before charts, setups or indicators, this is the skill that decides everything. Master it, and a normal losing streak costs you a small 6%. Ignore it, and the same streak can wipe out 60% of your account. The trader who lasts and the account that blows up often make exactly the same trades. The only difference is the size.
Here we start from zero. Every technical word is explained with a simple image, and every number is made concrete. Keep this page bookmarked: you will come back to it.
1. The principle: always bet the same small share
Picture a serious poker player. He never pushes his whole stack on a single hand. He bets a small share, roughly the same every time. Result: even after several losses in a row, he is still at the table to play the good hand.
In trading, it works the same. The golden rule fits in one sentence:
On each trade, you accept losing the same small percentage of your money — usually 1%, 2% at the very most.
An example makes it clearer. With 1% risk per trade, 10 losses in a row cost you about 10% of the account. It stings, but you bounce back. With a "whatever feels right" risk, the same 10 losses can ruin you.
Position size is simply the number of contracts (or lots) that makes it so that, if your stop-loss is hit — the level where you exit automatically when the market goes against you, like an emergency exit door — you lose exactly that percentage. No more, no less. Everything else in this guide serves to find that number.
Concretely, for you: on a €10,000 account with 1% risk, a trade that goes wrong should cost about €100. Not €1,000. That single habit separates a hobby from a method.
2. The formula: a recipe with 3 ingredients
Whatever the market, it is always the same recipe. Three ingredients:
- How much you accept losing on this trade (in euros or dollars).
- The distance of your stop (in points or pips): the gap between your entry and your emergency exit.
- What "1 point of movement" is worth on this market.
In plain terms:
How much I risk = my capital × my risk % Size = how much I risk ÷ (stop distance × value of one point)
The only real work is knowing the value of one point of the market you trade. That is exactly what the tables below give you — nothing to guess.
Simple rule: you always round down. If the calculation gives 2.7 contracts, you take 2, never 3. You never exceed the planned risk.
Concretely, for you: the formula is not there to make you look clever. It is a guardrail. It answers one question before you click: "if I am wrong, how much does it cost me?"
3. The vocabulary: 6 words, explained with images
No need to learn everything by heart, but these words come up everywhere:
| Word | In plain terms | Example |
|---|---|---|
| Point | 1 "large" price unit | The Nasdaq goes from 20,000 to 20,001 = 1 point |
| Tick | The smallest possible price step | On NQ, 1 tick = 0.25 point |
| Pip | The small standard step in forex (currencies) | EUR/USD: 1 pip = 0.0001; USD/JPY: 1 pip = 0.01 |
| Value of the point | What 1 point earns you (or costs you) per 1 contract | NQ: $20/point; MNQ: $2/point |
| Lot | In futures = 1 contract. In forex = a "package" of currency | 1 standard forex lot = 100,000 units |
| Leverage / margin | The money locked to open the position (≠ the risk) | Leverage does not enter the size calculation |
The most common trap: confusing leverage (the money the broker locks to open the position for you) with risk (what you really lose if it goes wrong). Think of a rental deposit: the deposit shows what you can rent, not what you are willing to lose. You calculate your size based on the risk. Leverage has nothing to do in the calculation.
4. Futures: the simplest case
Futures are the most squared-away field to learn. Why? Because they are standardized by the Exchange: the value of a point is the same for everyone, whatever your broker. So you can trust the table with your eyes closed.
Micro or full? Each big contract (the "full") has a little "micro" brother worth generally 10 times less. It is perfect for a small account: same market, same method, but a much finer risk — like buying a smaller bottle of the same water.
How to read the table: "value/point" = what 1 whole point is worth. On MNQ ($2/point), a 50-point stop costs 50 × 2 = $100 per contract.
| Market | Full | Value/point (full) | Micro | Value/point (micro) |
|---|---|---|---|---|
| Nasdaq 100 | NQ | $20 | MNQ | $2 |
| S&P 500 | ES | $50 | MES | $5 |
| Dow Jones | YM | $5 | MYM | $0.50 |
| Russell 2000 | RTY | $50 | M2K | $5 |
| Gold | GC | $100 | MGC | $10 |
| Silver | SI | $5,000 | SIL | $1,000 |
| Copper | HG | $25,000 | MHG | $2,500 |
| WTI Oil | CL | $1,000 | MCL | $100 |
| Natural gas | NG | $10,000 | MNG | $1,000 |
| Bitcoin | BTC | $5 | MBT | $0.10 |
| Ether | ETH | $50 | MET | $0.10 |
A very simple example. Account of $5,000, risk 1% → you accept losing $50. You trade MNQ ($2/point) with a 10-point stop.
- Cost of 1 contract if the stop is hit: 10 × 2 = $20
- Number of contracts: 50 ÷ 20 = 2.5 → 2 MNQ micros (we round down)
- Check: 2 × 10 × 2 = $40, well ≤ $50 ✅
The same stop on the NQ (the big one, $20/point) would give 50 ÷ (10 × 20) = 0.25 → 0 contracts. Translation: the big contract is too big for your account here. You switch to the micro (MNQ), quite simply.
5. CFDs: it all depends on YOUR broker
A CFD is a contract made directly with your broker (not with the Exchange). Consequence: each broker sets its own sizes. The same "1-lot position on US30" is not worth the same at two different brokers.
So, a single rule in CFDs: the value of the point is written in your broker's "contract specifications" (often called Contract specifications or Market details). You read it, you never guess it.
The figures below are common orders of magnitude — to be confirmed with yours:
| Type | CFD asset | Typical value per point (1 lot) | To check |
|---|---|---|---|
| US index | US30 (Dow) | ~$1 / point | sometimes $0.1 or $5 depending on the broker |
| US index | US100 / NAS100 | ~$1 / point | — |
| US index | US500 / SPX500 | ~$1 / point | — |
| EU index | GER40 / DAX | ~€1 / point | quoted in EUR → to convert into your currency |
| EU index | FRA40 / CAC | ~€1 / point | — |
| UK index | UK100 / FTSE | ~£1 / point | — |
| Metal | XAUUSD (Gold) | ~$100 / point (1 lot = 100 oz) | 1 "pip" (0.01) = $1 |
| Energy | WTI / USOIL | ~$100 / point (1 lot = 100 barrels) | variable |
| Crypto | BTCUSD | ~$1 / point (1 lot = 1 BTC) | very variable |
⚠️ Two serious brokers can show double or half. The only reliable source is the contract sheet of your account. Also look at the currency: a DAX in EUR with a USD account requires a conversion.
CFD example. Account of $2,000, risk 1% → $20 max. US30 at a broker where 1 lot = $1/point, 40-point stop: 1 lot would cost 40 × 1 = $40, already too much. If your broker allows fractional lots (0.5; 0.1…), you take 20 ÷ 40 = 0.5 lot. Otherwise: tighter stop, or bigger account.
6. Forex: everything revolves around the pip
In forex (currencies), the unit of measurement is called the pip (a very small price movement, like a millimeter on a ruler) and you buy by "lots":
- Standard lot = 100,000 units
- Mini-lot = 10,000 units (10 times smaller)
- Micro-lot = 1,000 units (100 times smaller)
| Pair | 1 pip | Pip value (1 standard lot) | Mini-lot | Micro-lot |
|---|---|---|---|---|
| EUR/USD, GBP/USD, AUD/USD… (*/USD) | 0.0001 | $10 (exactly) | $1 | $0.10 |
| USD/JPY | 0.01 | ≈ $6.7 (= 1,000 ÷ USD/JPY rate) | ≈ $0.67 | ≈ $0.067 |
| EUR/JPY, GBP/JPY (JPY pairs) | 0.01 | ≈ $6.7 (depends on USD/JPY) | — | — |
| USD/CHF | 0.0001 | ≈ $11 (= 10 ÷ USD/CHF rate) | — | — |
| USD/CAD | 0.0001 | ≈ $7.4 (= 10 ÷ USD/CAD rate) | — | — |
To remember, quite simply:
- Pair that ends in /USD (EUR/USD…) → $10/pip per standard lot. The simplest case.
- Pair in JPY → the pip is worth about $6.7, and it moves a little with the rate.
- Pair where the USD is not at the end (USD/CHF, USD/CAD…) → the pip value changes with the rate. Good news: your platform displays it live in the order window.
Forex example. Account of $10,000, risk 1% → $100. EUR/USD ($10/pip), 25-pip stop: 1 lot would cost 25 × 10 = $250 (too much). You take 100 ÷ 250 = 0.4 lot (i.e. 4 mini-lots). Real risk: 25 × 4 × $1 = $100 ✅
7. "Spot" gold and silver
- XAUUSD (Gold): generally 1 lot = 100 ounces. The ounce goes from 2,400 to 2,401 ($1) → $100 per lot. A $5 stop therefore costs 5 × 100 = $500 per lot.
- XAGUSD (Silver): often 1 lot = 5,000 ounces → the amounts climb fast (variable depending on the broker).
Once again, like any CFD: check the exact contract size with your broker.
8. The discipline rule that most traders forget
When the calculation gives you 0 contracts (or less than the minimum lot), it means only one thing:
This market is too big for your account with this stop. You do NOT take the trade.
It is not a frustration, it is a protection. Two options: tighten the stop (if your method allows it) or wait for a more suitable account. Forcing a position that is too big "because the setup is beautiful" is the beginning of trouble. Here, 0 is a good answer.
Concretely, for you: skipping a trade costs nothing. Taking a trade that is too big can cost months of progress. The math is quick.
9. Special case: how much to risk on a propfirm account (funded)
If you trade a funded account (propfirm), the logic shifts a little. The account money is not yours: what really matters is the maximum loss the firm allows you before cutting you off (the "max loss", or drawdown). That is your real risk capital — not the displayed size of the account.
A few common examples (it varies by firm — check YOUR rules):
| Account size | Typical max loss (your real budget) | In addition, often… |
|---|---|---|
| $50,000 | ≈ $2,000 to $2,500 | a max loss per day |
| $100,000 | ≈ $3,000 to $3,500 | a max loss per day |
| $150,000 | ≈ $4,500 to $5,000 | a max loss per day |
The right way to calculate:
- Your "capital" for the formula = the authorized max loss, not the account size. A 50k account with $2,000 of margin is like trading a $2,000 account.
- Small risk: 1% of $2,000 = $20 per trade. That lets you absorb a losing streak without getting ejected.
- Watch the daily loss: set yourself a limit (e.g. "I stop after 2 losing trades") well below the firm's daily limit.
In a propfirm, you don't play to win fast — you play to not get kicked out. It is the small size, repeated with discipline, that passes the levels.
💡 Cas concret — Tu trades un compte prop firm financé et tu encaisses 2 000 €/mois de gains. Selon ton statut (salarié, indépendant, société…), il te reste un net très différent une fois impôts et cotisations déduits — de l'ordre de 1 200 à 1 500 € en indépendant, davantage en société selon la rémunération choisie. Ces montants sont des ordres de grandeur à vérifier avec un professionnel : l'essentiel est de budgéter ton risque (taille de position, max loss) sur ce qui reste vraiment, pas sur le brut affiché.
10. The 5 mistakes that ruin an account
- Calculating on margin, not on risk. Leverage tells you how much you can open, never how much you must risk.
- Moving the stop to "give the trade a chance" → a small planned loss becomes a big suffered loss.
- Increasing the size after a loss to "make it back" → you take maximum risk at the worst moment.
- Forgetting the currency conversion (asset in EUR, account in USD) → your real risk is not what you think.
- Rounding up. Always down: you never exceed the risk budget.
Here is the truth, even if it stings: most beginners lose not because they read the market badly, but because they size too big and let one bad trade erase twenty good ones. The good news is that this is the easiest thing to fix — it is pure method, not talent.
11. To remember in 7 lines
- You risk a fixed % (1 to 2%), on each trade.
- Size = what I risk ÷ (stop distance × value of the point), rounded down.
- Futures: fixed point value (see the table), micro = 10× smaller.
- CFD: value that depends on the broker → read the contract sheet.
- Forex: pair in /USD = $10/pip per standard lot; the rest varies.
- Propfirm: your capital = the authorized max loss (e.g. 50k → ~$2,000), not the account size.
- Size 0 = no trade. Your capital comes before your ego.
What you retain from this guide fits in one idea: the size, not the analysis, is what keeps you in the game. A trader who sizes small can be wrong often and still be there tomorrow. A trader who sizes big can be right often and still lose everything on one trade. That is the whole philosophy.
And to go further, the platform is built to make this habit automatic. The JARVIS METHOD indicator on TradingView, together with the position calculator and the session/market markers, does this calculation live for you — the exact know-how stays reserved for members, and the formation (a complete, structured parcours with bootcamps, mentorat and events) teaches you to use it step by step. In the espace membre, the trading journal (screenshots + result + a short mindset check), the progression tracking and the "Mon Trading" hub with statistics turn each trade into a lesson. The assistant Telegram sends your plan of the day, the morning market brief and targeted reminders, while the coaching mindset and the "Ma forme" section (the trader's daily hygiene) keep discipline at the center. For the broader picture, the journal d'investissement (actions, ETF, crypto) and the Lectures JARVIS, the glossary and the country files give you the context. And in the chat or the group, you can simply ask: "calculate the size for a $5000 account, 1% risk, 10-point SL on MNQ" — JARVIS BOT answers you.
Your next concrete step: before your next trade, write down your 1% amount, your stop distance and the point value, then do the division. Round down. If it gives 0, you skip — and you will have just protected your account better than most.
Educational content from JARVIS Trading Institut. This is neither investment advice nor an incentive to take a position. The point and pip values of CFDs and forex depend on your broker and on prices: check them in your contract specifications. Trading involves a risk of capital loss; only invest what you can afford to lose.