Position Size
Position sizing
Risk-based position size
Decide how large a trade should be before you place it. Enter your account, the percentage you're willing to risk and your stop level — the size comes out of the maths, not out of a hunch.
Inputs
Your trade
Results
Recommended size
Position size20 units
Cash at risk$100
Risk per unit$5
Position value$2,000
Exposure vs accountPosition value as a share of equity20%
Stop distance5%
How it works
The sizing formula
Position sizing turns a vague "how much should I buy?" into a fixed answer. You choose the loss you can accept, the market gives you the stop distance, and the size falls out of the division.
risk cash = account × risk % risk/unit = |entry − stop| size = risk cash ÷ risk/unit
- Wider stops mean smaller positions for the same risk.
- Exposure can exceed 100% of equity when leverage is used — check the margin calculator.
- Fees and slippage are not included; keep a small buffer.
FAQ
Position sizing — frequently asked questions
Divide the cash you're willing to risk (account size × risk %) by the distance between your entry and your stop-loss. The result is the number of units you can hold so that hitting the stop costs exactly your intended risk.
Related
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Learn the concept
Position sizing, explained
Position sizing decides how much you trade, not what. Learn the 1% rule, the formula behind it, and why sizing beats entry accuracy over time.
Educational tool. Not financial advice. More tools