Run Trading Calculator
In this Trading Calculator Enter your trade details below to calculate the optimal position size, risk exposure, and reward potential — before you place the order.
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How Position Sizing Works
The Core Formula
Position Size = Risk Amount ÷ Stop Loss Distance
Where Risk Amount = Account Balance × Risk %
Example: 10,000 account, 1% risk, entry at 150, stop at 145 (distance = $5).
Risk Amount = 100 → Position Size = 100 ÷ 5 = 20 units.
Risk / Reward Ratio
R/R = (Take Profit − Entry) ÷ (Entry − Stop Loss)
A ratio of 1:2 means you risk 1 to potentially earn 2. Most professional traders require at least 1:1.5 before entering a trade.
Risk Management Guidelines
Recommended Risk Per Trade
- 0.5 – 1%: Conservative — ideal for beginners and high-volatility assets.
- 1 – 2%: Moderate — standard among experienced traders.
- 2 – 3%: Aggressive — for advanced traders with proven strategies.
- Above 5%: Dangerous — avoid risking more than 5% on any single trade.
R/R Ratio Benchmarks
- Below 1:1 — Avoid: The math works against you over time.
- 1:1 to 1:2 — Acceptable: Requires a high win rate to stay profitable.
- 1:2 and above — Strong: Recommended for most trading strategies.
- 1:3 and above — Excellent: You can be profitable winning less than 40% of trades.