The 1% Rule: Position Sizing for Funded Trading Accounts
By Aveon Funding · · 5 min read
Position sizing is the single biggest factor in whether a funded account survives. The 1% rule caps the loss on any one trade at 1% of the account balance.
The sizing formula
Position size = (balance × risk %) ÷ stop-loss distance in money per unit. For a $50,000 account risking 1% ($500) with a stop worth $10 per lot per pip and a 25-pip stop, size = 500 ÷ (25 × 10) = 2 lots.
How many losses can you take?
| Risk per trade | 3% daily (Instant Lite) | 4% daily (Two Step) | 5% daily (One Step) |
|---|---|---|---|
| 0.5% | 6 | 8 | 10 |
| 1% | 3 | 4 | 5 |
| 2% | 1 | 2 | 2 |
Spread, commission and slippage reduce these numbers slightly in practice, so leave a margin.
Pick your program and risk per trade to see exact limits in dollars.
Try the risk calculatorFrequently asked questions
What is the 1% rule in trading?
Never risk more than 1% of the account balance on a single trade.
How much should I risk on a $100k funded account?
At 0.5–1% risk, that is $500–$1,000 per trade, which keeps several losses inside a typical daily limit.