Position Size Calculator
Determine the exact number of units to trade based on your account size, risk tolerance, and stop loss placement.
Free — no signup, no ads, instant results
Inputs
Results
Position Size
20.00 units
Risk Amount
$100.00
Distance to Stop
5.00%
Who Is This For?
Any trader who needs to calculate how many shares, lots, or units to trade based on their risk tolerance. Essential for forex, stock, crypto, and futures traders following proper risk management.
Why Position Sizing Matters
Position sizing is one of the most critical aspects of risk management. Trading too large risks blowing your account on a single bad trade, while trading too small leaves potential returns on the table.
Most professional traders risk between 0.5% and 2% of their account per trade. This calculator helps you translate that percentage into an exact position size based on your stop loss distance.
Pair proper position sizing with precise entry signals from GrandAlgo indicators to build a consistently profitable trading system. Learn more in our guide on surviving losing streaks with proper sizing and building a complete trading system.
The Position Sizing Formula
The core position sizing formula is: Position Size = (Account Balance × Risk %) / (Entry Price - Stop Loss Price)
For example, with a $10,000 account risking 1%, your risk budget is $100. If your entry price is $50 and your stop loss is $48, the risk per unit is $2. Your position size would be $100 / $2 = 50 units.
For forex, convert the result to lots. If you're risking 20 pips on EUR/USD with a $100 risk budget and a pip value of $10 per standard lot, the position size is $100 / (20 × $10) = 0.5 lots.
How to Use This Calculator
1. Enter account balance and risk percentage
Input your total account balance and the percentage you want to risk on this trade. Most professionals recommend 1-2% per trade.
2. Enter entry price and stop loss price
Input the price where you plan to enter the trade and the price where your stop loss will be placed. The distance between these determines your risk per unit.
3. Read the calculated position size and dollar risk
The calculator displays the exact number of units to trade and the total dollar amount at risk, so you can verify it matches your risk tolerance.
4. Adjust risk percentage if needed
If the position size feels too large or too small, adjust your risk percentage up or down. This lets you find the right balance between capital efficiency and safety.
Worked Example
Step 1: Account balance $10,000, risk 2% = $200 dollar risk.
Step 2: Entry price $50, stop loss $48. Risk per unit = $2.
Step 3: Position size = $200 / $2.
Result: 100 shares.
Assumptions & Edge Cases
- Assumes a fixed stop loss (no trailing).
- Does not account for slippage or gaps.
- Commission costs not included in the risk calculation.
- Works for any asset class with a defined price.
Frequently Asked Questions
Most professional traders risk 0.5% to 2% per trade. Beginners should start at 0.5-1%. The exact percentage depends on your win rate, strategy type, and risk tolerance. Use the risk of ruin calculator to find the maximum safe risk level for your specific strategy.
Divide your dollar risk by the pip value times the number of pips to your stop loss. For example, risking $100 with a 25-pip stop on EUR/USD (where 1 standard lot = $10/pip): position size = $100 / (25 × $10) = 0.4 standard lots, or 4 mini lots.
No. Position size should vary based on the distance to your stop loss. A tighter stop allows a larger position while maintaining the same dollar risk. This is why fixed-percentage risk management is superior to fixed-lot trading — it automatically adjusts your size to match the setup.