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Risk 5 min readSeptember 18, 2026

Position sizing: the 1% rule that keeps you in the game

How professionals size trades so one bad day never ends a challenge — with the exact formula and a worked example.

By the Axora Funded Research Team

The best entry in the world cannot save a position that is too big. Sizing decides how long you survive; your edge decides how much you make while you survive.

The formula

Lots = (Equity × Risk %) ÷ (Stop distance × Value per point per lot). On EURUSD one standard lot is worth $10 per pip, so a 20-pip stop risking 1% of $100,000 ($1,000) gives 1,000 ÷ (20 × 10) = 5 lots.

Use the built-in calculator

Our order ticket has a risk calculator. Enable a stop loss, type the % of equity you want to risk and press "Size position": the volume is set for you, and the ticket shows the dollar risk at your stop before you click Buy or Sell.

How much to risk

  • 0.5%–1% per trade is a common range during an evaluation.
  • With a 4% daily limit, four consecutive 1% losses already put you at the edge. Many traders stop for the day after two or three.
  • Reduce size after a losing streak; never increase it to "win it back".

Put it into practice

Try our platform free for 14 days, or start your challenge and trade up to $200K.