Position Size Calculator
Universal position size calculator that works for any tradable asset - stocks, forex, crypto, commodities, and more. Features visual risk gauge, leverage support, and live market data display. Proper position sizing is the foundation of successful risk management in trading. Perfect complement to our risk/reward and pip calculators.
📊 Position Size Calculator
Enter your trading parameters to calculate the optimal position size
Position Size Results
Risk Breakdown
📊 Advanced Position Analysis
🎯 Risk Assessment
📈 Live Market Data
Real-time prices and volatility indicators for popular trading instruments
How to Calculate Position Size
Set Account Balance
Enter your total trading account balance. This should be the amount you have available for trading, not your entire net worth.
Choose Risk Percentage
Decide how much of your account you're willing to risk on this trade. Most professionals recommend 1-3% per trade.
Enter Entry & Stop Loss
Set your planned entry price and stop loss level. The distance between these determines your risk per share/unit.
Get Optimal Size
The calculator shows your ideal position size, total risk amount, and position value for proper risk management.
Position Sizing Formula
Position Size = (Account Balance × Risk %) ÷ (Entry Price - Stop Loss Price) Example:
- Account Balance: $10,000
- Risk per trade: 2% = $200
- Entry Price: $50.00
- Stop Loss: $48.00
- Risk per share: $2.00
- Position Size: $200 ÷ $2.00 = 100 shares
Position Sizing Best Practices
Never Risk More Than 3%
Professional traders typically risk 1-3% of their account per trade. This ensures you can survive multiple losing trades while preserving capital for profitable opportunities.
Use Proper Stop Losses
Your stop loss should be based on technical analysis, not arbitrary percentages. Place stops below support levels or above resistance levels.
Adjust for Volatility
Reduce position size for highly volatile assets. Consider using ATR (Average True Range) to adjust your risk based on market volatility.
Consider Correlation
Avoid over-concentration in correlated assets. If you hold multiple positions in the same sector, your effective risk is higher than calculated.
Risk-Reward Ratio
Aim for at least 1:2 risk-reward ratio. If you risk $100, target $200+ profit. Higher ratios allow for lower win rates while remaining profitable.
Scale Position Size
Consider scaling up position size when confidence is high and scaling down during uncertain market conditions or when learning new strategies.
Position Sizing Examples
Conservative Example
Low RiskModerate Example
Medium RiskAggressive Example
Higher RiskPosition Sizing FAQ
What percentage of my account should I risk per trade?
Most professional traders risk 1-3% of their account per trade. Beginners should start with 1% or less until they develop consistent profitability. Never risk more than 5% on a single trade.
How do I calculate position size for different asset classes?
The formula is the same for stocks, forex, crypto, and commodities. The key is accurately determining the risk per unit (share, lot, contract) based on your entry and stop loss prices.
Should I use the same position size for every trade?
No. Position size should vary based on the distance to your stop loss, market volatility, and your confidence in the trade setup. Tighter stops allow for larger position sizes with the same risk.
What if my calculated position size is too large for my account?
If the position size exceeds your buying power, either reduce your risk percentage, find a closer stop loss level, or skip the trade. Never trade without proper risk management.
How do I adjust position size for leveraged trading?
Leverage amplifies both gains and losses. Calculate position size based on the actual dollar risk, not the leveraged amount. A $10,000 account with 10:1 leverage should still only risk $200 (2%) per trade.
Should I consider fees when calculating position size?
Yes, include trading fees in your risk calculation, especially for frequent trading or small accounts. High fees can significantly impact your actual risk-reward ratio.