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⚠️ For educational purposes only. This is not financial advice. Always manage risk appropriately.
Enter your values and click Calculate
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How to Use This Calculator

  1. Account Balance: Enter your total trading account value in USD.
  2. Risk Per Trade: The percentage of your account you're willing to lose if the trade hits your stop loss. Most professional traders use 1–2%.
  3. Entry Price: The price at which you plan to enter the trade.
  4. Stop Loss Price: Your planned stop loss level. For long trades this is below entry; for short trades, above.

The calculator divides your dollar risk by the price distance to your stop loss, giving you the exact number of shares to buy.

Position Sizing Formula

Dollar Risk = Account Balance × (Risk % ÷ 100)

Price Risk = |Entry Price − Stop Loss Price|

Position Size = Dollar Risk ÷ Price Risk

For example: $10,000 account, 1% risk, entry at $150, stop at $147.50 → $100 risk ÷ $2.50 = 40 shares.

Frequently Asked Questions

What risk percentage should I use?

Most professional traders risk 0.5% to 2% per trade. Beginners should start at 0.5–1%. Risking more than 2% per trade significantly increases the chance of account blowout.

Does this work for short trades?

Yes. For short trades, your stop loss will be above your entry price. The calculator uses the absolute difference, so direction doesn't matter.

Can I use this for futures?

For futures, use the Futures Tick Value Calculator instead, which accounts for contract multipliers and tick sizes.

Why is position sizing important?

Proper position sizing ensures that no single losing trade damages your account significantly. Even a strategy with a 40% win rate can be highly profitable with correct position sizing and a good risk/reward ratio.