Position Size Calculator
Category: Trading CalculatorsDetermine the optimal position size for your trades based on your account size and risk management preferences
Position Size Results
Risk-Reward Visualization
Account Risk Analysis
Trade Details
About Position Sizing
Position sizing is a crucial aspect of risk management in trading. It helps you determine how much of your capital to risk on any single trade, ensuring you preserve your account during losing streaks.
Risk Management
Proper position sizing ensures you never risk more than a predetermined percentage of your account on any single trade.
Risk-Reward Ratio
A good risk-reward ratio (typically 1:2 or higher) means your potential profit is at least twice your potential loss.
Stop Loss
Setting a stop loss is essential for managing risk. It defines your maximum acceptable loss on a trade.
Position Size
Your position size should be calculated based on your account size, risk tolerance, and the distance to your stop loss.
Tips for Using the Calculator
- Keep your risk percentage between 1-3% of your account balance per trade.
- Always set a stop loss based on technical levels, not on how much you're willing to lose.
- Aim for a risk-reward ratio of at least 1:2 to maintain profitability even with a lower win rate.
- Adjust your position size for more volatile currency pairs or during major news events.
What this calculates
How large a position can be while keeping a trade within your risk limit.
- Formula
position size = (account balance × risk %) ÷ (stop distance in pips × pip value)- Worked example
- A 50,000 HKD account risking 1% is 500 HKD. With a 25-pip stop and a pip value of 0.78 HKD, that is 500 ÷ (25 × 0.78) ≈ 25,600 units.
- When to use it
- Every trade. It is the step that turns a risk rule into an actual order size.
- Common mistake
- Risking a percentage of the *starting* balance rather than the current one. After a losing run, that quietly raises your real risk per trade.