Position Size Calculator
Calculate the optimal number of shares to buy based on your risk tolerance and stop loss level.
Most traders risk 1-2% per trade
Shares to Buy
50
Position Value
$7,500.00
Large Position Warning
This position is 30.00% of your account. Consider reducing your position size.
How to Calculate Position Size
Position sizing is one of the most important aspects of risk management in trading. It helps you determine how many shares to buy while limiting your potential loss to a predetermined amount.
The formula calculates the maximum number of shares you can purchase while keeping your risk at a specific percentage of your account. Most professional traders risk between 1-2% of their account per trade.
Position Size Formula
Shares = (Account Size × Risk %) / (Entry Price - Stop Loss)Example
With a $25,000 account, risking 1% ($250), and a stop loss $5 below your entry price, you would buy 50 shares: $250 ÷ $5 = 50 shares.
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