# Lot Size Calculation for MT4 and MT5

> Calculate lot sizes accurately for MetaTrader 4 and 5. Learn how contract sizes affect your risk on different assets.

**Tags:** lot-size, metatrader, mt4, mt5, position-sizing
**URL:** https://traderjournal.app/risk-calculators/lot-size-calculation-for-mt4-and-mt5

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# Lot Size Calculation for MT4 and MT5

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) use "lots" to measure position size. While standard currency pairs use a contract size of 100,000 units, contract sizes for indices, commodities, and crypto can vary significantly depending on your broker.

Calculating your lot sizes accurately is critical to avoiding unexpected drawdowns.

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## Understanding Contract Sizes

A standard lot (1.0 lot) represents:
- **Forex:** 100,000 units of the base currency.
- **Gold:** 100 ounces of gold.
- **US Oil:** 1,000 barrels of oil.
- **Bitcoin:** 1 Bitcoin (on most brokers).

Because these values differ, a 1.0 lot trade on EURUSD risks a different amount than a 1.0 lot trade on XAUUSD, even with the same stop loss distance.

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## How to Calculate Lot Size for MetaTrader

To calculate your lot size:

`Lot Size = Dollar Risk Budget / (Stop Loss in Pips * Pip Value per Lot)`

Always check your broker's contract specifications in MT4/MT5 (right-click the symbol in Market Watch and select "Specification") to verify the contract size before entering trades.

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## Logging Your Lot Sizes

Record your lot sizes in your trading journal. Monitor if your position sizes are aligned with your risk rules, especially on highly volatile assets like indices and commodities.

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Trader Journal for MT4 and MT5 syncs your MetaTrader trade data automatically, capturing your exact lot sizes and contract values.

Download it today at android.traderjournal.app or ios.traderjournal.app.