📐 Position Size Calculator
Calculate the exact number of shares or forex lot size for any trade based on your account size, risk tolerance, and stop loss distance. Available for both stocks and forex markets.
Position Sizing Formulas
Real-World Example
$10,000 account, 2% risk, buy at $50, stop loss at $47.
Frequently Asked Questions
Position sizing determines how much capital is at risk in each trade. Without proper sizing, a few bad trades can wipe out a significant portion of your account. Correct sizing ensures no single trade can cause catastrophic loss.
Most professional traders risk 1-2% of their account per trade. This means even 10 consecutive losses only reduces your account by 10-20%. Risking more than 5% is considered aggressive and 10%+ is effectively gambling.
Over-leveraging means taking a position so large that even a small adverse price movement causes a significant percentage loss to your account. It is one of the most common causes of trader account blow-ups.
Fixed risk means risking a set dollar amount per trade (e.g. always $100). Percentage risk means risking a percentage of your current account. Percentage risk is preferred as it automatically scales up with profits and down with losses.
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Forex Profit Calculator
Calculate profit or loss in pips and currency for forex trades.