Risk-based position sizing for any asset class. Enter your account size, the percent you're willing to risk, and your stop distance — the calculator gives you the exact position size in units, shares, or contracts.
Position sizing is the most important decision in any trade — more important than the entry price or the indicator that triggered the trade. The math is simple: position size = (account × risk%) ÷ stop distance. If you have a $10,000 account, you risk 1% per trade ($100), and your stop is $2 below entry on a stock — your position size is 50 shares. If the trade goes against you and hits the stop, your max loss is exactly $100. If it works, your upside depends on your target.
| Risk per trade | For whom | 10-loss drawdown |
|---|---|---|
| 0.25% | Brand new traders | ~2.5% |
| 0.5% | Conservative pros | ~5% |
| 1% | Standard retail | ~9.6% |
| 2% | Aggressive retail | ~18.3% |
| 5%+ | Gamblers | ~40% |
Drawdown column shows the percentage loss after 10 consecutive losing trades using risk-based sizing. The compounding makes 2% feel much worse than "20% gross" suggests.
Choosing how many shares/contracts/lots to buy based on how much you're willing to lose if the trade fails. Standard model risks fixed percent (0.5%–2%) of account per trade.
Limits loss on any single trade to 1% of total account. Position size adjusts based on stop distance. Foundation of retail risk management.
(Account × risk %) ÷ stop distance. The calculator above does this automatically.
Upper end of prudent. 10 consecutive 2% losses = 18% drawdown. Pros risk 0.5–1%. New traders start at 0.5% or lower.
Yes automatically. Risk-based sizing scales to current equity. Prevents martingale on shrinking accounts.