POSITION SIZE CALCULATOR
Free Online Position Size Calculator for Risk Management
Live Calculator
Calculate the ideal position size based on your account balance, risk percentage, and stop-loss to manage trading risk effectively.
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.