Position Size Calculator

Determine the right number of shares based on your risk tolerance and account size.

Account Size ($)

Risk per Trade (%)

Entry Price ($)

Stop Loss Price ($)

What is Position Sizing?

Position sizing determines how many shares to buy based on how much you're willing to lose on a single trade.

Shares = (Account × Risk%) ÷ |Entry − Stop Loss|

The 1-2% rule: most professional traders risk no more than 1-2% of their account on any single trade.

⚠️ Disclaimer: This calculator is for educational and informational purposes only. It does not constitute financial advice. Always consult a qualified financial advisor before making investment decisions.

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Frequently Asked Questions

What is the 2% rule in trading?

The 2% rule means you should never risk more than 2% of your total account value on a single trade. This helps manage risk and prevent large losses.

How do I calculate position size?

Position Size = (Account × Risk%) ÷ |Entry Price - Stop Loss|. For example, $50K account, 2% risk, $10 stop loss = 100 shares.

What is risk-reward ratio?

Risk-reward ratio compares potential loss to potential gain. A 1:3 ratio means you risk $1 to potentially gain $3. Most traders look for at least 1:2.