Position Size Calculator
Calculate optimal position size based on your account balance, risk percentage, and stop loss distance.
Essential for proper risk management.
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Position Size
Position sizing is the most critical risk management tool in trading. It determines how many units, lots, or shares to trade based on your predefined risk tolerance.
Position Size = (Account Balance × Risk %) / Stop Loss Distance
For stocks (shares):
Shares = (Account Balance × Risk %) / (Entry Price − Stop Loss Price)
For forex (lots):
Lots = (Account Balance × Risk %) / (Stop Loss Pips × Pip Value)
Common risk percentages per trade:
- Conservative: 0.5–1%
- Moderate: 1–2%
- Aggressive: 2–3%
- Maximum (not recommended): 5%+
Why position sizing matters:
- At 1% risk per trade, you can lose 100 trades in a row before blowing your account
- At 5% risk, only 20 consecutive losses wipes you out
- Professional traders rarely risk more than 1–2% per trade