INVESTIK FUTURE POSITION SIZE CALCULATOR
Risk Management — Protect Capital, Trade with Confidence
Live Calculator
Calculate the ideal position size based on your account capital, risk tolerance, and trade setup
Trade Parameters
Account Capital (₹)
₹1,00,000
₹
ℹ️ Total trading capital in your account
Risk Per Trade (%)
1% of capital
%
ℹ️ Professional traders risk 1–2% per trade maximum
Entry Price (₹)
₹500.00
₹
ℹ️ Price at which you plan to enter the trade
Stop Loss Price (₹)
₹480.00
₹
ℹ️ Price at which you'll exit to limit your loss
Target Price (₹)
₹560.00
₹
ℹ️ Your profit target price for this trade
Capital Allocation
0%
Capital Used
Safe
At Risk
Position Summary
Risk Amount (₹)
₹0
Risk per Share (₹)
₹0
Shares to Buy
0
Position Value (₹)
₹0
Potential Profit (₹)
₹0
Risk:Reward Ratio
0 : 0
📊 Enter all values to calculate R:R ratio
Risk % vs Position Size — Scenario Comparison
Position Value
Risk Amount
Risk Scenario Breakdown
| Risk % | Risk Amount | Shares | Position Value |
|---|
📚 Position Sizing Knowledge Hub
Master the art of risk management — the cornerstone of successful trading!
📐 What is Position Sizing?
Position sizing is the process of determining how many shares or units to buy in a trade based on your risk tolerance and stop-loss level. It is the single most important skill in trading — it's not about picking winners, it's about surviving losers and protecting your capital for the next opportunity. 🎯
🎯
The 1% Rule
Max 1–2%
Professional traders never risk more than 1–2% of their total capital on a single trade. This ensures survival through losing streaks.
📉
Stop Loss
Non-negotiable
A stop loss defines your maximum loss per trade. Without a stop loss, a single bad trade can wipe out weeks of profits.
⚖️
Risk:Reward
Min 1:2
Always aim for at least a 1:2 risk-to-reward ratio. This means if you risk ₹1, you aim to make ₹2. A 1:3 ratio is ideal.
🛡️
Capital Protection
First Priority
The first rule of trading is don't lose money. Position sizing is your primary tool to protect your capital at all times.
📊
Win Rate Math
40% wins = profit
With a 1:2 R:R ratio, you can be profitable even with just 40% winning trades. Position sizing makes this possible.
🔄
Compounding
Recalculate always
Recalculate your position size for every trade. As your capital grows or shrinks, your risk amount must be updated accordingly.
1%
Golden Rule
💛 The Golden Rule of Position Sizing
Every professional trader lives by this: Never risk more than 1% of your account on a single trade. With ₹1,00,000 in capital, your maximum risk per trade is just ₹1,000. This way, even 10 consecutive losses only reduce your capital by 10% — keeping you in the game.
✅ Survive losing streaks
✅ Consistent position sizing
✅ Emotion-free trading
💡 Smart Position Sizing Tips
📐
Use the formula every time — Position Size = Risk Amount ÷ Risk per Share. Never eyeball it. Always calculate before entering a trade.
🛑
Set stop loss BEFORE entering — Decide your stop loss level first, then calculate position size. Not the other way around.
📈
Aim for 1:2 or better R:R — If your risk:reward is below 1:1.5, skip the trade. Bad setups with poor R:R will destroy your account over time.
🔄
Resize after big wins or losses — If your capital changes significantly, recalculate your standard risk amount. Never keep using a fixed ₹ amount forever.
🧘
Position sizing removes emotion — When you know your exact loss is capped at 1%, you stop panic-selling at minor dips and stick to your plan.
📓
Keep a trading journal — Record every trade with position size, entry, stop, target, and outcome. Patterns will emerge and improve your decision-making.
❓ Frequently Asked Questions
How is position size calculated?
Position Size = (Account Capital × Risk %) ÷ (Entry Price − Stop Loss Price). This gives you the exact number of shares to buy so that if stopped out, you lose only your predefined risk amount.
What if the position size exceeds my capital?
If the calculated position value exceeds your capital, cap it at your available capital. This usually happens when the stop loss is very tight. Consider widening your stop or reducing risk %.
Should I use the same risk % for all trades?
Generally yes — consistency is key. Some traders use 0.5% for uncertain setups and 2% for high-conviction trades. But never exceed your maximum risk limit regardless of conviction.
What is a good Risk:Reward ratio?
A minimum of 1:2 is recommended for most traders. This means for every ₹1 risked, you aim to make ₹2. With a 50% win rate and 1:2 R:R, you will be profitable. 1:3 is considered excellent.
Can I use this for F&O (Futures & Options)?
Yes, the same principle applies. For futures, use lot size instead of individual shares. For options, factor in the premium as your maximum risk, and adjust accordingly. Always define your max loss first.