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Legal and risk notice

Education only

Sentinelle Markets is an education platform. Everything on this site, in the lessons, the Playbook, the materials and the tools is for education and information only. Nothing here is investment advice, a research recommendation, a buy or sell signal, an offer or a solicitation to buy or sell any financial instrument.

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Sentinelle Markets is not a broker, dealer, bank, fund manager or financial institution. It does not execute orders, does not hold client money and does not manage accounts. Sentinelle Markets is not licensed or regulated as an investment adviser or financial service provider by any authority, including the Financial Conduct Authority (FCA) in the UK, the SEC, CFTC or NFA in the United States, ASIC in Australia, CIRO in Canada, the AMF in France or any similar body, and it provides no regulated service. No lesson takes into account your personal financial situation, goals or risk tolerance.

Risk of loss

Trading forex, gold, indices, crypto-assets and contracts for difference (CFDs) carries a high level of risk and can result in the loss of all the money you invest; with leveraged products, losses can happen quickly. Most retail investor accounts lose money when trading these products. Only trade with money you can afford to lose without affecting your financial life, and make sure you understand how these products work.

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Past results do not guarantee future results. Backtests, strategy statistics and demo account trades are hypothetical and have limits: they don't reflect real costs, slippage, liquidity or the emotional effect of risking real money. Charts, prices, figures and examples used in the lessons and on the site are illustrative and may be simulated.

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Every decision to trade, and any result of it, is solely the responsibility of the person who makes it. Before trading, check the laws, licensing rules and tax treatment that apply where you live, and seek independent professional advice where needed. Some products may not be available or legal in your country. Sentinelle Markets services are for people aged 18 and over.

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To the extent permitted by law, Sentinelle Markets is not liable for any loss or damage, direct or indirect, arising from the use of the content, tools or information on this site, or from errors, delays or unavailability. By using the site, you confirm you have read and accept the Terms of Use, the Privacy Policy and the Risk Disclosure.

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Free tool

Lot size calculator

Your lot size should come from the money you're willing to lose and the distance to your stop, never from how much you'd like to win. This calculator does the maths for you.

Fill in your balance and stop to see the lot size.

Approximate values. Check the contract size with your broker.

How to use it

  1. 1Enter your account balance and its currency (for an account not in US dollars, add today's exchange rate).
  2. 2Choose the risk per trade: 1% is filled in as an educational example.
  3. 3Pick the asset and enter your stop distance in pips, points or dollars.
  4. 4The lot size shown is rounded down, so the risk never goes above what you planned.

3 short lessons and a printable broker and risk checklist

Check the broker, cap the risk: the regulator register, a daily loss limit, the stop and the position size on one page, before you trade.

Questions

How is the lot size calculated?

Lot size = money at risk ÷ (stop distance × value of one pip per lot). With a $1,000 account, 1% risk ($10) and a 20-pip stop on EUR/USD ($10 a pip per lot): 10 ÷ (20 × 10) = 0.05 lots.

Why is my gold lot size so small?

One lot of gold is 100 ounces, so each $1 move is worth $100 per lot. Gold also moves several dollars a day, so the stop is wide and the lot has to be small to keep the same risk in money.

Does leverage change the lot size?

No. Leverage only decides how big a position the broker lets you open. Your risk comes from the lot size and the stop, which is why the calculator doesn't ask for leverage.

What if the result is below 0.01?

0.01 (a micro lot) is the smallest size most brokers allow. If the calculator shows less, your stop is too wide for your account and risk: skip the trade or use a closer, valid stop.

Keep reading

  • Brokers & regulationAMF, FSMA and FINMA warning lists explained: what a clean search does and doesn't prove
  • DisciplineOvertrading explained: 7 warning signs and a daily trade cap
  • Brokers & regulationEU retail client protections explained: leverage caps, 50% close-out and negative balance