If you're researching position size, this guide explains the essentials in plain language. Overview
Position sizing keeps risk consistent
Position sizing is the fastest way to control risk without changing your strategy. This calculator helps you determine how many shares, units, or lots to trade so that if your stop-loss is hit, you lose no more than your chosen risk per trade.
Use it for sizing long or short positions across liquid markets and keep your risk rule consistent trade to trade.
New here? Visit the Tools Hub for the full library.
Stocks & ETFs
Calculate shares based on entry, stop-loss, and account risk.
Crypto
Size coins or tokens with optional fees and slippage buffers.
Forex & CFDs
Convert pips and pip value into lots or units with contract-size selection.
Calculator
Size your trade in seconds
Auto-updates as you type. Copy results to share a quick risk summary.
Typical range: 0.5% to 2%.
Typical range: 0.5% to 2%.
Need help? Use the pip value calculator .
Outputs
Risk amount
$0
Risk per unit
$0
Stop distance: 0
Position size
0
Units / shares (rounded down)
Notional value
$0
Lot size
0.00
Units
0
Risk per pip
$0
Why it matters
Trade size should follow risk, not conviction
Two traders can share the same entry and stop, but the wrong position size can turn a good setup into a bad outcome. Consistent sizing keeps your drawdowns predictable and protects you from a single oversized loss.
Protect capital
Cap your worst-case loss at a fixed percentage of your account.
Stay consistent
Use the same risk rule across assets, timeframes, and strategies.
Reduce emotion
Sizing by formula helps avoid revenge or FOMO-driven trades.
Model realistic costs
Include fees, spread, and slippage to avoid underestimating risk.
Quick checklist
Before you size a position
- Set your risk per trade as a percent of account equity.
- Confirm the stop-loss distance in price or pips.
- Add realistic fees and buffers for execution.
- Round down to tradable units or broker lot steps.
Need more context?
Pair this calculator with the R-Multiple and Expectancy tools to see how sizing impacts long-term performance.
How it works
How the Position Size Calculator works
This tool converts your risk rule into a position size:
- Set your maximum loss for the trade using a risk percentage.
- Measure your stop-loss distance (price difference or pips).
- Size the position so the stop-loss equals your risk amount.
Price-Based Formula
Risk Amount = Account Size x (Risk % / 100)
Risk per Unit = |Entry - Stop| + Fees + Buffer
Units = floor(Risk Amount / Risk per Unit)
Notional Value = Units x Entry
Forex Formula
Risk Amount = Account Size x (Risk % / 100)
Lot Size = Risk Amount / (Stop Pips x Pip Value per 1.00 Lot)
Units = Lot Size x Contract Size
Risk per Pip = Risk Amount / Stop Pips
Examples
Example (Price-Based)
- Account size: $10,000
- Risk per trade: 1% = $100
- Entry: $50, Stop: $48 = $2 risk per share
- Position size: $100 / $2 = 50 shares
Example (Forex)
- Account size: $10,000
- Risk per trade: 1% = $100
- Stop-loss: 25 pips
- Pip value (1.00 lot): $10/pip
- Lot size: $100 / (25 x $10) = 0.40 lots
Related tools
Level up your risk toolkit
FAQ
Position sizing FAQs
What is position sizing?
Position sizing is the process of selecting how many shares, units, or lots to trade so the loss at your stop-loss matches a fixed risk amount.
How do I calculate position size from a risk percentage?
Convert your risk percent into a dollar amount, then divide by the risk per unit (entry minus stop, plus fees or buffer). That gives the maximum size that fits your risk limit.
Does leverage change position sizing?
Leverage affects margin and notional exposure, but your position size should still be based on the same dollar risk at your stop-loss.
What risk percentage should I use per trade?
Many traders use 0.5% to 2% per trade, but the right choice depends on your strategy, drawdown tolerance, and account volatility.
How is forex position sizing different from stocks or crypto?
Forex sizing uses pips, lot sizes, and contract size. Convert your risk amount into lots using stop-loss pips and pip value, then translate lots into units.
Disclaimer
Educational tool only. Results are estimates. Confirm contract specs, fees, and broker rules before trading.