FTMO $25,000 Challenge — Position Size Calculator

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Risk Guide

With FTMO's $25k account and 5% daily loss limit ($1,250), understanding your risk math is crucial for survival. At 1% risk per trade ($250), you can take exactly 5 losing trades in a row before hitting the daily loss limit. At 2% risk ($500 per trade), you're limited to just 2 consecutive losses before you're done for the day. This is where most traders blow accounts - they don't realize how quickly losses compound. The specific danger with this account size is overconfidence. Many traders think $25k gives them room to breathe, but 5 losing trades at 1% risk equals your entire daily allowance. If you're trading correlated pairs or holding multiple positions simultaneously, those 'separate' trades can quickly become one massive loss when the market moves against you. For position sizing on popular instruments: EURUSD with a 50-pip stop at 1% risk allows 0.50 lots ($250 ÷ 50 pips). GBPUSD with a 40-pip stop permits 0.625 lots. For indices, if you're trading NAS100 with a 20-point stop, you can trade 1.25 lots ($250 ÷ $20). Gold (XAUUSD) with a $10 stop loss allows 25 micro lots or 2.5 mini lots. Between challenge phases, your risk management stays identical - the daily loss limit remains 5% throughout Phase 1 and Phase 2. However, your profit targets shift dramatically: Phase 1 requires $2,500 profit (10%), while Phase 2 only needs $1,250 (5%). Many traders make the mistake of increasing risk in Phase 2 thinking it's 'easier,' but the daily loss rules haven't changed. You still lose everything with 5 bad trades at 1% risk. The 10% maximum drawdown ($2,500) is your ultimate boundary. This includes both realized and unrealized losses, so floating negative positions count against you immediately. Most successful FTMO traders never risk more than 0.5-1% per trade, keeping their maximum daily exposure well below the 5% threshold.

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