FTMO is the most recognised prop firm in the world, and its rules are also the ones most commonly misunderstood. Getting your lot size right on FTMO isn't complicated — but one wrong trade can end your challenge. This guide covers every stage.
FTMO rules at a glance
| Rule | Phase 1 | Phase 2 | Funded |
|---|---|---|---|
| Daily loss limit | 5% | 5% | 5% |
| Max drawdown | 10% | 10% | 10% |
| Leverage (FX) | 1:100 | 1:100 | 1:100 |
| Profit target | 10% | 5% | None |
| Min trading days | 4 | 4 | None |
The lot size formula for FTMO
Risk Amount = Account Balance × Risk %
Pip Value on EUR/USD = $10 per standard lot
Risk: 1% = $1,000 · Stop: 25 pips on EUR/USD · Pip value: $10/lot
Lot size = $1,000 ÷ (25 × $10) = $1,000 ÷ $250 = 4.00 lots
How FTMO's daily loss limit works
FTMO calculates the daily loss limit from your initial account balance, not your current equity. On a $100,000 account the daily limit is always $5,000 — even after you've grown the account to $110,000.
Critically, the limit includes open floating losses. If your open trades show a $5,000 unrealised loss at any point during the trading day, you have hit the limit even if no trades are closed. The day resets at midnight CET.
Safe risk per trade on FTMO
Most traders who successfully pass the FTMO challenge use 0.5% to 1% per trade during challenge phases. Here's why this matters:
| Risk % | Losses before 10% max DD | Verdict |
|---|---|---|
| 0.5% | 20 losses | Comfortable |
| 1.0% | 10 losses | Standard |
| 2.0% | 5 losses | Tight |
| 3.0% | 3 losses | One bad session = failed |
Does leverage affect lot size on FTMO?
No. FTMO's 1:100 leverage doesn't change the risk formula — it only affects how much margin is locked up per lot. At 1:100, one standard EUR/USD lot requires $1,000 margin. The lot size itself is determined purely by your risk amount and stop loss.
Free FTMO lot size calculator — Phase 1, Phase 2 & funded
Daily loss limit, 1:100 leverage and 10% max drawdown rules pre-loaded. Enter your account size and stop loss — get the correct FTMO position size in 2 seconds.
Open the FTMO lot size calculator →