Position Size & Risk Calculator

How it's calculated

Money you can risk = capital × risk %. Shares = money you can risk ÷ (entry − stop-loss), limited by the shares your capital can buy. Risk : reward = (target − entry) ÷ (entry − stop-loss).

Sizing a trade by the risk you can afford

Position sizing decides how many shares to buy so that a losing trade costs you only a set part of your capital. You pick the percentage of capital you are willing to lose on one trade, then work back from your entry and stop-loss prices to the number of shares.

With the example values, risking 1% of ₹5,00,000 means ₹5,000 at risk. With an entry of ₹250 and a stop-loss of ₹240, each share risks ₹10, so you can buy 500 shares. At a target of ₹280, the reward is three times the risk.

Frequently asked questions

How do I calculate position size?

Divide the money you are willing to risk by the gap between your entry price and your stop-loss price. The calculator also caps it at what your capital can buy.

What risk per trade is sensible?

Many traders keep it to a small percentage of capital, such as 1% or 2%. The right figure depends on your own tolerance and strategy.

What is a risk : reward ratio?

It compares what you could gain to what you could lose. A ratio of 1 : 3 means the potential profit is three times the potential loss.

How to use the Position Size & Risk Calculator

Enter trading capital, risk per trade, entry price, stop-loss price, target price. The calculator updates as you type and shows Shares to buy, along with the figures behind it. It runs in your browser, so nothing you enter is sent anywhere. Use the Reset button to go back to the example values.