Investing
Size a position from account risk %, stop distance, and reward-to-risk.
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Trade parameters
- Risk amount
- $500.00
- Shares / units
- 100
- Position value
- $10,000.00
- Target (2R)
- $110.00
- Potential reward
- $1,000.00
- Per-unit risk
- $5.00
These are simplified estimates for planning only — not financial, tax, or legal advice. Figures may be approximate and change over time.
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How to position size calculator
- Set your risk. Enter account size and the percentage you'll risk per trade.
- Enter levels. Add entry, stop-loss, and target prices.
- Read the size. See position size, risk amount, and risk-reward ratio.
Consistent risk management, not stock picking, is what keeps traders solvent. Position sizing enforces that: by fixing how much you'll lose if a stop is hit, it tells you exactly how many units to buy regardless of conviction.
The risk-reward ratio then sanity-checks whether the trade is worth taking. For measuring realized returns afterward, use the CAGR/XIRR calculator.
Frequently asked questions
How is position size calculated?
Risk amount (account × risk %) divided by the per-unit risk (entry minus stop) gives the number of units that keeps your loss within the limit if the stop is hit.
What is a good risk-reward ratio?
Many traders look for at least 1:2 (risking one to make two), but the right ratio depends on your win rate; the tool shows the ratio so you can judge.
Is this trading advice?
No. It's a risk-management calculation, not a recommendation to trade or a prediction. Trading carries risk of loss.
Related tools
- CAGR & XIRRCompute CAGR and money-weighted XIRR from irregular cash flows locally.
- ROI & break-evenCompute return on investment, annualized ROI, and break-even units on your device.
- RebalancingCompare target vs. current allocation and get buy/sell amounts to rebalance.
- Capital gainsEstimate short- vs. long-term capital gains from buy/sell lots. An estimate, not advice.