🎯 Risk Management
Position Size
Calculator
Calculate optimal trade size based on your account and risk tolerance. Professional risk management in seconds.
Position Size
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Position Value
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Risk Amount
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Stop-Loss Distance
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INR
Position Sizing: The Most Important Skill in Trading
Position sizing answers: "How many tokens should I buy?" The correct answer limits your potential loss to a pre-defined percentage of your account if the stop-loss is hit. Formula: Risk Amount = Account × Risk%. Position Value = Risk Amount ÷ Stop Distance%.
Most professional traders risk 0.5–2% per trade. At 1% risk, 20 consecutive losing trades only depletes 20% of capital — giving enough runway to recover. Risking 5%+ per trade leads to account blow-ups statistically.
Frequently Asked Questions
Professional traders typically risk 0.5–2% per trade. Beginners should start with 0.5–1%. Risking more than 5% per trade leads to large drawdowns that are mathematically very difficult to recover from.
Stop-losses should be placed at a price where your trade thesis is invalidated — below key support levels, below recent lows, or at a volatility-based distance (e.g. 2× ATR below entry). Avoid placing stops at round numbers.
This calculator computes position value in terms of actual exposure. For leveraged trading, divide the position value by your leverage multiplier to get the required margin.
Most traders aim for at least 2:1 risk-to-reward (profit target is 2× the stop-loss distance). At 2:1 R:R, you only need to be right 34% of the time to be profitable long-term.
Yes. Position sizing applies regardless of timeframe. For long-term holdings, your stop-loss might be a major support level or a percentage drawdown threshold rather than a tight technical stop.
Some traders scale with conviction. However, many professionals use a fixed 1% for every trade to remove emotional sizing decisions. Overconfidence bias is a real risk when sizing up.