Position Size Calculator

Trade Parameters

Account Size ($)

Total trading capital available

Risk Per Trade (%)

Recommended: 1-2% for conservative, 2-3% for moderate

Entry Price ($)

Your planned entry price per share

Stop Loss ($)

Your stop loss price per share

Commission Type

Commission Amount ($)

Commission per share or per trade

Recommended Position

Risk Level

Conservative (1%) Moderate (2-3%) Aggressive (5%+)

How to Use This Calculator

This position size calculator helps you determine the optimal number of shares to trade based on your risk tolerance and stop loss placement.

1. Account Size

Enter your total trading capital. This is the amount you have available to trade, not including funds reserved for living expenses.

2. Risk Percentage

Most professional traders risk 1-2% per trade. Never risk more than 5% on a single trade to preserve capital.

3. Entry & Stop Loss

Your entry price and stop loss define your risk per share. The wider your stop, the fewer shares you should buy.

4. Commission

Include trading commissions for accurate position sizing. Even small fees impact your actual risk-reward ratio.

Position Sizing Best Practices

Never risk more than 2% per trade - Protects against catastrophic losses
Use wider stops for volatile stocks - Prevents getting stopped out prematurely
Scale down position size in uncertain markets - Reduce risk during high volatility
Account for correlation - Don't take multiple similar positions at once
Leave room for averaging down - Don't use full buying power on initial entry

Frequently Asked Questions

What is position sizing in trading?

Position sizing is the process of determining how many shares or contracts to buy based on your account size, risk tolerance, and stop loss placement. It's a critical risk management technique that protects traders from catastrophic losses.

How much should I risk per trade?

Most professional traders risk 1-2% of their account per trade. Conservative traders use 1%, moderate traders use 2-3%, and aggressive traders may risk up to 5%. Never risk more than you can afford to lose on a single trade.

How do I calculate position size?

Position size = (Account Size × Risk %) / (Entry Price - Stop Loss Price). For example, with a $10,000 account, 2% risk ($200), entry at $100 and stop at $95, you would buy 40 shares ($200 / $5 risk per share).

Should I include commission in my position size calculation?

Yes, always include commission costs when calculating position size. Even small per-share commissions can impact your actual risk-reward ratio. Our calculator accounts for both per-share and per-trade commission structures.

What if my position size exceeds my buying power?

If the calculated position size requires more capital than you have, you need to either increase your account size, use a wider stop loss, or reduce your risk percentage per trade. Never use margin to take positions larger than your risk tolerance allows.