Position Size Calculator
Risk-Based Position Size
Risk from Fixed Position
Formula
Position Size = (Account x Risk%) / |Entry - Stop Loss|; Risk% = (Units x Stop Distance) / Account x 100
Frequently Asked Questions
What is position sizing?
Position sizing determines how large your trade should be based on your account size and risk tolerance. It ensures no single trade can cause catastrophic losses to your account.
What is the recommended risk per trade?
Most professional traders risk 1-2% of their account per trade. This allows for a series of losing trades without significantly depleting the account.
How does stop loss affect position size?
A tighter stop loss allows for a larger position size at the same risk level. A wider stop requires a smaller position to maintain the same dollar risk.
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