Position Size Calculator: Risk Per Trade | Tradetron
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Position size calculator

Position size is the amount you can risk on a trade divided by what one unit loses if the stop-loss is hit: risk ₹10,000 with a 50-point stop and the size is 200 units.

Enter your capital, the percent you will risk and your stop distance below to get the number of lots or shares and the money at risk.

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Lots to trade –
Risk budget–
Money at risk at this size–
Risk per lot–
Position value–

Calculations are illustrative, for education only, and are not investment advice.

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How to use it
  1. [ 01 ]

    Enter your trading capital and the percent of it you are willing to lose on this one trade.

  2. [ 02 ]

    Enter the stop-loss distance in points: the gap between your entry price and your stop-loss.

  3. [ 03 ]

    Enter the lot size in units per lot. Use 1 for shares in the cash market.

  4. [ 04 ]

    Read the lots to trade, rounded down to whole lots, and the money at risk at that size. Add an entry price to see the value of the position.

Questions

Common questions.

What is the formula for position size?
Units = (capital × risk percent) ÷ stop-loss distance per unit. With ₹5,00,000 capital, 1% risk and a 25-point stop: ₹5,000 ÷ 25 = 200 units. Divide by the lot size and round down to get whole lots.
How much of my capital should I risk on one trade?
That is your decision and depends on your strategy and circumstances. Many traders write down a fixed percent per trade before they start so that one loss cannot do outsized damage. This calculator shows the size for whatever percent you choose.
Why does the calculator round down?
You can only trade whole lots. Rounding up would put more than your chosen amount at risk, so the result is the largest whole number of lots that stays within it.
The result says zero lots. What does that mean?
One lot loses more than your risk budget if the stop is hit. Use a closer stop-loss, a larger risk amount or a contract with a smaller lot size.
Does a stop-loss limit my loss to this amount?
Not always. A stop-loss order can fill at a worse price than the stop in a fast market or when a price gaps past it, so the real loss can be larger than the figure shown here.
Is position size the same as margin?
No. Position size comes from how much you are willing to lose. Margin is what your broker blocks to let you hold the position. Check both before you trade.
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Calculations are illustrative, for education only, and are not investment advice.

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