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Educational Content Only

Nothing on this site constitutes financial advice, trading recommendations, or investment guidance. All content is for educational purposes only. Always do your own research and consult qualified professionals before making financial decisions.

LearnToolsPosition Calculator

Position Size Calculator

Calculate the optimal position size based on your risk tolerance

Account & Risk Settings

$
2%

Moderate

0.5%1%2%3%5%

Trade Parameters

Long
$
2% from entry
$
Risk Per Unit$2

Long position: Stop below entry

moderate Risk2%

Moderate risk level. Widely recommended for most traders.

0%1%2%3%5%

Calculation Results

Position Size

100

Units to trade

Dollar Risk

$200

Maximum loss

Notional Value

$10,000

Total position value

Risk Per Unit

$2

Stop distance

Trade Summary

DirectionLong
Entry Price$100
Units100
Total Value$10,000
Max Loss$200

How It Works

Position Size = (Account Size × Risk %) / Risk Per Unit

Risk Per Unit = |Entry Price - Stop Loss Price|

This formula ensures you only risk a fixed percentage of your account on each trade, regardless of the stop distance.

Example

With a $10,000 account risking 2%, you're willing to lose $200 per trade. If your entry is $100 and stop is $98, the risk per unit is $2. Therefore: $200 / $2 = 100 units.

Risk Management Tips

  • 1.Most professional traders risk 1-2% per trade to survive losing streaks.
  • 2.A wider stop requires fewer units to maintain the same dollar risk.
  • 3.Never move your stop loss further away to avoid taking a loss.
  • 4.Consider commission and slippage when calculating your actual risk.

Related Lessons

  • Risk Management:Mathematics of Position Sizing
  • Risk Management:Risk/Reward Ratios
  • Risk Management:Account Preservation