Position Sizing Calculator
Calculate optimal trade size based on your risk parameters.
Frequently Asked Questions
What is position sizing?
Position sizing determines how many shares or units to trade based on your account size, risk tolerance, and stop-loss distance.
How much should I risk per trade?
Most professional traders risk 1-2% of their account per trade. Conservative traders risk 0.5-1%, while aggressive traders may risk 2-5%.
Why is position sizing important?
Proper position sizing is the key to surviving losing streaks and protecting your capital. It is often more important than your entry or exit strategy.
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What is this tool?
Position sizing determines how many shares or units to buy or sell based on your account size, risk tolerance, and stop loss level. Formula: Position Size = (Account Size x Risk %) / |Entry Price - Stop Loss|. Proper position sizing is the most critical factor in trading success.
How to use
- 1
Enter account size
Input your total trading account balance.
- 2
Set risk percentage
Choose risk per trade, typically 1-2%.
- 3
Enter entry and stop loss
Input your entry price and stop loss level.
- 4
Set take profit
Enter your target profit price.
- 5
View results
See position size, risk amount, and exposure analysis.
Frequently Asked Questions
How much should I risk per trade?
Most professional traders risk 1-2% of their account per trade. Never risk more than 5% on a single trade.
Why is position sizing important?
Position sizing controls risk regardless of entry signal quality. Even a 40% win rate can be profitable with proper sizing.
What is total exposure?
Total exposure is the sum of all open positions relative to your account. Keep it under 100% for margin safety.