Write the exposure down.
A standalone worksheet for recording the inputs behind a position-sizing estimate, then adding costs and execution uncertainty to the picture.
01 / How to use the sheet
Start with the price move, then add uncertainty.
A simple planning relationship is price-move loss ≈ stop distance × pip or point value. The stop distance tells you how far price would need to move to reach the planned level; the pip or point value translates each unit of that move into your account currency for the planned size.
To make a broader estimate, organize the other possible deductions separately:
Total potential loss estimate ≈ price-move loss + spread and commission + financing or other costs + slippage or gap allowance
Broker-specific contract details, pip or point conventions, minimum sizes, and currency conversion can change the result. Verify the current specifications and costs with the broker or venue; do not assume a pip value from an example.
02 / Your inputs
Record the position-sizing inputs
Type into the lines or print this page and write by hand. Leave a note beside any number that still needs verification.
For example, write the pair or market name used by your broker.
Write long, short, buy, sell, or your own neutral label.
Record the price you are using for this plan.
Record the level or condition that would invalidate the idea.
Use the unit that matches the instrument and broker specification.
Write units, lots, contracts, or another broker-defined quantity.
Use the currency in which you want to view the estimate.
Verify this value for the planned size, pair, and account currency.
03 / Potential-loss estimate
Add costs and execution allowance
First estimate the price-move loss using the relationship above. Then record the costs and allowance you want to keep visible. Actual spread, commission, financing, slippage, gaps, liquidity, and fill conditions can differ from a plan.
Check whether each figure is in the account currency. If conversion is required, verify the conversion method and current rate separately.
04 / Worked example
Illustrative arithmetic only
Hypothetical example — illustrative only
These invented values are not a suggested size, stop, percentage, risk limit, or account outcome. They are included only to show the arithmetic.
- Hypothetical stop distance
- 25 pips
- Hypothetical pip value
- $1 per pip
- Price-move loss estimate
- 25 × $1 = $25
- Hypothetical costs and allowance
- $3 + $5 = $8
- Total potential-loss estimate
- $25 + $8 = $33
In this illustration, the $3 and $5 figures are also hypothetical. A real result can be different because of broker terms, currency conversion, financing, spread, commission, slippage, gaps, liquidity, leverage, or fast execution.