Position size calculator
Position sizing decides how much you trade, not just where you enter. Fixing the amount you can lose on each trade stops one bad trade from doing serious damage to your account.
- Amount at risk
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- Position size (units)
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- Position value
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- Position as % of account
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How it works
Amount at risk = account balance × risk %. Units = amount at risk ÷ the distance between entry and stop-loss. The result is right when the instrument is priced in your account currency; for forex pairs use the forex lot size calculator.
Worked example
Account 5,000, risk 1%, entry 100, stop-loss 95. Amount at risk = 50. Distance = 5. Units = 50 ÷ 5 = 10. Position value = 1,000, which is 20% of the account.
Things to watch
- Slippage and price gaps can make the real loss bigger than planned.
- Fees and spread are not included.
- A smaller risk percentage means a smaller position, not a tighter stop-loss.
This tool is for education and planning. It is not investment advice, and it cannot account for spreads, fees, slippage or your broker’s rules.