Position sizing determines how many shares or units to trade based on how much of your account you're willing to risk — a core risk-management calculation for traders. Enter your numbers below.
Position Size Calculator
How to Use the Position Size Calculator
- Enter your total account size.
- Enter the percentage of your account you're willing to risk on this single trade (many traders use 1-2%).
- Enter your planned entry price.
- Enter your stop loss price — where you'd exit if the trade goes against you.
- Click "Calculate Position Size" to see how many shares/units to trade.
How Position Size Is Calculated
Position sizing works backward from your risk tolerance, not forward from how much you want to buy:
Dollar Risk = Account Size × Risk Percentage
Risk Per Share = |Entry Price − Stop Loss Price|
Position Size = Dollar Risk ÷ Risk Per Share
This ensures that if your stop loss is hit, you lose only the percentage of your account you decided in advance — regardless of how many shares you actually buy.
Frequently Asked Questions
What risk percentage should I use per trade?
Many traders and risk-management frameworks commonly reference 1-2% of account size per trade, though the right number depends on your strategy, risk tolerance, and overall portfolio approach.
Does this account for trading fees or slippage?
No — this is a base position-size calculation. Real-world execution may involve fees, slippage, or partial fills that affect your actual risk slightly.
Can I use this for options or futures instead of stocks?
The same risk-based logic applies, but you'd need to adjust for contract multipliers and leverage, which this calculator doesn't account for directly.
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Disclaimer: This calculator provides general mathematical estimates for educational purposes only and is not financial or investment advice. Trading involves risk of loss — consult a licensed financial advisor before making investment decisions.
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