Forex Account Risk Calculator

What the Forex Account Risk Calculator does

Total account risk is the sum of what every open position would cost if all stops were hit. Currency pairs are heavily correlated, so simultaneous positions frequently lose together — which is why a portfolio-level limit matters more in forex than in most markets.

Formula

• Risk per trade = Balance × Risk % ÷ 100
• Total risk = Risk per trade × Open positions
• Maximum positions = Max total risk % ÷ Risk per trade %

Inputs explained

How to use it

1. Choose Currency.
2. Enter Account balance, Risk per trade, Open positions and Maximum total risk.
3. Select Calculate.

Worked example

A $20,000 account risking 1% each on 3 open trades, with a 6% limit.

Balance

20000

Risk per trade

1

Open positions

3

Limit

6

$600 total at risk, 3% of the account — room for 3 more positions.

Reading the result

• "Additional positions allowed" assumes every future position risks the same percentage as "risk per trade" — it answers "how many more like these can I open," not a general capacity figure for mixed-size positions.
• The "consecutive losses" table shows why a total-risk limit matters over a losing streak — losses compound against a shrinking balance, so even a strict per-trade risk erodes the account faster than simple multiplication suggests once several losses run in a row.

Assumptions and limitations

• "Open positions" is a simple count where every position is assumed to risk exactly the entered per-trade percentage — it cannot represent a mix of differently-sized positions risking different amounts.
• The correlation warning in the notes is advisory only — the calculator has no way to detect correlated pairs itself, so "total account risk" as computed here can understate true portfolio risk when open positions are actually correlated.

Common mistakes

• Counting open positions without the correlation adjustment the notes and FAQ both call for — three correlated USD positions reading as "3% total risk" can behave like one large directional bet, not three independent ones.
• Treating "additional positions allowed" as a target to fill up to rather than a ceiling — the number answers how many more can be opened, not how many more should be.

Frequently asked questions

How do I account for correlation?

Treat highly correlated pairs as a single position for risk purposes. EUR/USD and GBP/USD often move together against the dollar.

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