Position Size & Risk Calculator
Never risk more than you meant to. Enter your account, the percentage you're willing to risk, and your entry and stop — get the exact position size and your risk/reward in one place.
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How to use the calculator
- Choose Long or Short and your currency.
- Enter your account balance and the percentage you're willing to risk on this trade (1% is a common starting point).
- Enter your planned entry and stop-loss prices. The distance between them is your risk per share.
- Add a target price to see your risk/reward ratio and potential profit.
Why position sizing matters more than your entry
Most traders obsess over where to enter and ignore how much to trade — but position sizing is what actually determines whether one bad trade is a scratch or a disaster. When you size every trade so a full stop-out costs the same small slice of your account, no single loss can knock you out, and a losing streak stays survivable. That discipline — defining your risk before you enter and sizing to it — is the difference between an account that compounds and one that blows up.
The formula is simple: your risk amount (account × risk %) divided by your risk per share (the gap between entry and stop) gives the number of shares or units to trade. This calculator does that instantly, and shows your risk/reward so you can skip trades that don't pay you enough for the risk.
Frequently asked questions
How much should I risk per trade?
A widely used guideline is to risk a small, fixed fraction of your account on any single trade — often between 0.5% and 2%. Risking small means no single loss can seriously damage your account, which is what keeps you in the game long enough for your edge to play out.
How is position size calculated?
Position size = the amount you're willing to risk ÷ the risk per share. The risk per share is the distance between your entry and your stop-loss. So if you'll risk $100 and your stop is $2 away from entry, your position size is 50 shares.
What is a good risk/reward ratio?
Many traders look for at least 1:2 — risking one unit to potentially make two. A higher ratio means you can be right less than half the time and still be profitable. The calculator shows your ratio once you add a target price.
Does this work for forex, crypto, and international stocks?
Yes. The math is the same for any instrument priced per unit — stocks, forex, crypto, or shares on any exchange worldwide. Just switch the currency and enter your prices. (For forex lots and futures contracts, treat 'shares/units' as your base unit and adjust for contract size.)
How do I size a position for F&O or intraday trades?
Treat one lot as your base unit and the loss per lot at your stop distance as your risk per unit. Decide the rupee amount you are willing to lose if the stop is hit (account × risk %), then divide that by the loss per lot to get how many lots keep the loss within your limit. The maths is identical to sizing shares — only the unit changes. This is an educational calculator; it does not tell you what or when to trade.
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Educational tool only — not financial advice. Trading involves substantial risk of loss. Also see our trading blog. Rebuilding after a drawdown? Try the position sizing after a loss tool. Want to see how you actually sized your last 100 trades? The free Trader Health Check reads your own exported trade history (CSV) and scores your position sizing and loss discipline.