Position Size Calculator
Calculate optimal position size based on risk management
Calculator
Recommended: 1-2% for conservative, 3-5% for aggressive trading
How to Use
Calculate optimal position size for risk management
Enter account size
Input your total trading capital
Set risk percentage
Choose how much to risk (1-2% recommended)
Enter trade details
Input entry price and stop loss level
Get position size
See recommended position size and risk amount
Position Size Formula
Position Size = (Account Balance × Risk %) / (Entry Price - Stop Loss)
Divide your risk amount by the distance to stop loss to determine how many units to trade.
Frequently Asked Questions
Position sizing determines how much capital to allocate to a single trade based on your risk tolerance. Proper position sizing prevents any single trade from significantly damaging your portfolio, even if it results in a total loss.
The 1% rule means never risking more than 1% of your total trading capital on a single trade. With a $10,000 account and 1% risk, your maximum loss per trade is $100. This allows you to survive a losing streak without blowing your account.
Position Size = (Account × Risk%) / (Entry Price - Stop Loss). Example: $10,000 account, 2% risk, entry at $100, stop at $95. Position = ($10,000 × 0.02) / ($100 - $95) = $200 / $5 = 40 units.
Yes, with leverage your actual risk increases. If using 10x leverage, a 10% move wipes out your position. Reduce position size proportionally to leverage. With 10x leverage and 1% risk tolerance, risk only 0.1% of the position value.