Position Size Calculator
One of the most common questions traders ask is: “How much should I trade on this setup?” Our Position Size Calculator provides the exact answer. Enter your account balance, risk percentage, and stop loss distance, and the tool instantly tells you the correct position size for forex, stocks, crypto, or gold. By sizing positions correctly, you keep losses consistent and prevent a single trade from damaging your account.
What Is Position Sizing in Trading?
Position sizing is the process of determining how many units (lots, shares, contracts, or coins) you should trade in order to stay within your predefined risk. It’s the cornerstone of risk management. Without correct position sizing, even a great strategy can lead to large losses. With it, traders can survive losing streaks and compound gains steadily.
Our calculator automates this process: you input entry, stop loss, risk %, and account size, and it returns the position size that matches your plan — no guesswork required.
Why Position Size Matters
- Capital protection: Prevents oversized trades from wiping out your account during losing streaks.
- Consistency: Keeps your risk per trade constant, making results more stable and trackable.
- Adaptability: Works across all asset classes — stocks, forex, crypto, gold, or indices.
- Supports compounding: As your account grows, position sizing grows proportionally, keeping risk aligned.
How to Use the Position Size Calculator
- Enter account balance: e.g., $10,000.
- Select risk percentage: Typically 1–2% of your account per trade.
- Input entry price and stop loss: The calculator measures the stop distance to compute risk.
- Click Calculate: You’ll see the exact number of units/shares/lots to trade.
Examples
Example 1 — Forex (EUR/USD): Account balance $10,000, risk 2% ($200), stop distance 50 pips. Calculator returns 40,000 units (0.40 lots). If stopped out, you only lose $200.
Example 2 — Stocks: Account balance $5,000, risk 1% ($50), buy price $100, stop at $95 (5 points risk). Calculator returns 10 shares. If stopped out, you lose $50, exactly 1% of your account.
Example 3 — Gold: Account $20,000, risk 2% ($400), stop distance $8. Calculator gives the correct contract size to match $400 risk.
Advanced Tips & Risk Management Insights
- Combine with Stop Loss: Always define stop distance first, then size your position. Never size first and then “eyeball” a stop.
- Adjust for volatility: Wider stops mean smaller positions; tighter stops allow bigger size — but also increase the chance of noise stop-outs.
- Account for correlation: Two correlated positions (e.g., EUR/USD and GBP/USD) can double your effective risk if both move together.
- Leverage awareness: High leverage magnifies gains and losses. Correct sizing prevents leverage from destroying your account.
- Keep risk constant: Professional traders risk a fixed % (commonly 0.5–2%) on every trade. Consistency is key.
Frequently Asked Questions
What is the best risk % per trade?
Does this work for crypto?
Why can’t I just trade the same lot size every time?
Related Tools
Outbound references:
Investopedia — Position Sizing ·
BabyPips — Position Sizing Explained