Position Size Calculator

It uses the fixed-fractional method, the standard risk-based sizing approach. First it finds your dollar risk budget as account balance times the risk percent. Then it divides that budget by the per-share risk, which is the distance between your entry and stop-loss price. The result is the largest number of shares you can hold without losing more than your budget if the stop is hit. For example, a 25,000 account risking 1 percent gives a 250 budget, and a 2 stop distance allows 125 shares.

Most experienced traders risk 1 to 2 percent of their account on any single trade, and many beginners stay at or below 1 percent. The point is survival: at 1 percent risk you could lose 20 trades in a row and still keep about 82 percent of your capital, while at 10 percent risk that same streak would nearly wipe you out. Smaller risk per trade means slower growth but far more room to recover from a losing stretch.

The calculator rounds to the selected share or lot increment. Rounding down keeps the planned entry-to-stop loss at or below the budget under the entered prices. It does not guarantee realized risk because gaps, slippage, fees, liquidity, and stop execution can increase the loss, and some brokers support fractional shares.

Position size moves inversely with the stop distance. A tighter stop means a smaller per-share risk, so the same dollar budget buys more shares; a wider stop means fewer shares. This is why two trades with the same risk percent can have very different share counts. The dollar amount you risk stays fixed by your rule, while the share count and total position value adjust to the chart.

When you turn on leverage, the tool divides the position value by your leverage ratio to show the margin actually required to hold the trade. With a cash account (1:1) the required capital equals the full position value, so a risk-sized position can still be larger than your balance. The calculator warns you when the required capital exceeds your account so you can widen the stop, lower the risk percent, or trade fewer units.

No. It is an educational estimate based on the numbers you enter, not financial or investment advice. It does not account for commissions, slippage, gaps past your stop, overnight financing, or correlated positions that raise your true risk. Treat the output as a planning starting point and consider a licensed financial professional for decisions about your own money.