Tools · Risk Management

Position Size Calculator

Enter your account size, the percentage you're willing to risk, your entry price, and your stop loss. The calculator does the rest — including leverage and reward-to-risk ratios.

Inputs

Direction

Account size

Total capital you have available across the account that will hold this trade.

Risk per trade

% of account you'll lose if your stop is hit. Pros use 1%. Beginners should never exceed 2%.

Entry price

Stop-loss price

Where you'll exit if the trade goes against you. Must be below entry for LONG, above entry for SHORT.

Target / take-profit (optional)

For calculating reward-to-risk ratio. Leave at 0 to skip.

Leverage (optional)

1x = spot / no leverage. Higher leverage reduces required margin but doesn't change risk per trade.

Results

Position Size —

Position Value (no leverage) —

Required Margin (with leverage) —

Stop Distance —

Maximum Loss —

Maximum Profit —

Reward : Risk —

Liquidation Price (est.) —

How this calculator works

Position Size is calculated as Risk Amount ÷ Stop Distance. If you're willing to risk $100 and your stop is $5 below your entry, your position is 20 units. This is the most important calculation — it ensures losing the trade only costs what you decided up front.

Required Margin with leverage is Position Value ÷ Leverage. Leverage doesn't change your risk-per-trade — only the amount of cash you need to open the position. A 10x leveraged trade still loses your full risk amount if the stop hits.

Liquidation Price is estimated using Entry × (1 − 1/Leverage × 0.95) for longs (95% margin utilization assumption). Different exchanges have different formulas — always check your exchange's actual liquidation price before sizing.

Reward-to-Risk Ratio compares profit potential to maximum loss. Anything below 1.5:1 generally isn't worth taking. Most professional traders look for 2:1 or better.

For more on why position sizing matters more than entry timing, read our Investing 101 tutorial.