Free tool
Position size calculator
Enter your account balance, the percentage you are willing to risk, and your entry and stop prices. You get the exact position size that keeps the loss inside your risk budget.
Your trade
Currency-agnostic: the balance, risk amount and prices just need to use the same currency.
Result
Position size
units / shares / coins / contracts
50.0000
Risk amount
1.00% of balance
100.00
Stop distance
2.00% from entry
2.0000
Notional exposure
position size x entry price
5,000.00
Reward:risk to target
3.00R
Profit at target
300.00
Leverage, commissions, spread and swap are not included — add a small buffer for costs.
The formula
risk amount = balance × (risk % ÷ 100) stop distance = |entry − stop loss| position size = risk amount ÷ stop distance
Notice what is missing: your conviction. Position size is a function of account equity and stop distance only. The moment "this one looks really good" starts changing the size, risk stops being constant and one trade can undo a month.
Worked example
A €10,000 account risking 1% has a €100 risk budget. Long entry at 100.00 with a stop at 98.00 gives a 2.00 stop distance, so the position is 100 ÷ 2 = 50 units, or €5,000 notional. If the target at 106.00 is hit, that is 3R — €300.
Frequently asked questions
- How do you calculate position size from risk percent?
- Risk amount = account balance x risk % / 100. Position size = risk amount / stop distance per unit, where stop distance is the absolute difference between your entry price and your stop-loss price. The result is the number of units, shares, coins or contracts to trade.
- How much should I risk per trade?
- Most professional risk frameworks keep single-trade risk between 0.25% and 1% of account equity so that a normal losing streak cannot end the account. A trader risking 1% survives far longer than one risking 5%, even with the same win rate.
- Does this work for forex lots?
- Yes. The calculator returns units of the instrument. For forex, divide the unit count by 100,000 for standard lots, 10,000 for mini lots or 1,000 for micro lots. For a USD-quoted pair the pip value follows directly from the unit count.
- Why does my stop distance matter more than my stop in pips?
- Because position size scales inversely with stop distance. A wider stop with the same risk amount simply means a smaller position. That is what keeps risk constant across setups instead of letting a wide-stop trade quietly become your biggest loser.
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