Position Size Calculator for Stocks, Forex & Crypto

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 as this can lead to account destruction.

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. Our calculator handles all asset classes automatically.

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. Use our risk-reward calculator to optimize your setups.

Leverage amplifies both gains and losses but doesn't change your risk calculation. Always calculate position size based on your actual account balance and risk tolerance, not the leveraged amount. For example, with a $10,000 account and 10:1 leverage, still only risk $200 (2%) per trade, regardless of the $100,000 buying power.

Yes, reduce position sizes during high volatility periods when price swings are larger. In volatile markets, consider reducing risk to 0.5-1% instead of your normal 2%. Use our volatility analysis tool to assess current market conditions.

The Kelly Criterion calculates optimal bet size based on your win rate and average win/loss ratio. While mathematically optimal, it can suggest very large position sizes. Most traders use 25-50% of the Kelly recommendation for more conservative risk management.