Position Size Calculator — Risk per Trade

Work back from the money you are willing to lose and your stop distance to the position size that risks exactly that and no more.

How to use
  1. Enter your account size and the percent you will risk.
  2. Enter the entry price and the stop price.
  3. Read the position size that risks exactly that.
Frequently asked questions
How much should I risk per trade?
One to two percent of the account is the common convention. It is small enough that a run of losses is survivable, which is the whole purpose of sizing.
Why size from the stop rather than a fixed amount?
Because the stop distance decides the loss. A tight stop allows a larger position for the same risk; sizing without reference to it means your real risk moves trade by trade.
What if the stop is very close?
The position gets large, and so does slippage risk. A stop placed for sizing convenience rather than at a level the chart justifies is the usual mistake here.
Does this account for leverage?
The size that comes out is the exposure you need. Whether that requires leverage depends on your account, and leverage changes margin, not the loss the stop defines.
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