Position Size Calculator
Calculate the right number of shares, units, or coins to buy based on your account size and risk tolerance.
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Position Size
40.0000 units
Risk Amount
$200.00
Position Value
$6000.00
Distance to Stop
$5.00
% of Account
60.0%
How Position Sizing Works
Position sizing determines how many shares, lots, or coins you should buy on a given trade. The formula is simple: divide the dollar amount you're willing to risk by the distance between your entry price and your stop loss.
Position Size = (Account Balance × Risk %) ÷ |Entry Price − Stop Loss|
For example, with a $10,000 account risking 2% per trade, your risk amount is $200. If you enter at $150 with a stop loss at $145, the distance is $5. So your position size is $200 ÷ $5 = 40 units.
Most experienced traders risk between 1% and 2% of their account per trade. This keeps any single loss small enough that you can recover from a losing streak without significant damage to your account.
Why Position Sizing Matters
Position sizing is the single most important risk management tool in trading. A good entry with bad position sizing can still blow up your account. A mediocre entry with proper position sizing keeps you in the game.
New traders often focus on what to trade and when to enter. But how much to risk is what determines whether you survive long enough to learn. Getting this right from the start — even in practice — builds the habit that protects you when real money is on the line.