POSITION SIZE CALCULATOR
1. TRADE INPUTS
2. POSITION SUMMARY
Shares / Units to Buy
Capital Used (₹)
20,000.00
Potential Risk (₹)
2,000.00
Potential Reward (₹)
4,000.00
Unused Capital (₹)
80,000.00
Stop Loss Distance (%)
10.00%
Target Price (₹)
120.00
Risk / Reward Ratio
1 : 2.00
Risk Per Share (₹)
Reward Per Share (₹)
3. FORMULA USED
Risk Amount=Account Balance × Risk %
Position Size=Risk Amount ÷ (Entry Price − Stop Loss Price)
Target Price=Entry Price + (Entry Price − Stop Loss Price) × R:R
Reward=(Target Price − Entry Price) × Position Size
4. YOUR TRADE SETUP
Note: This calculator is for educational purposes only.
Always do your own research and consult a financial advisor.
Always do your own research and consult a financial advisor.
What is position sizing?
Position sizing decides how many shares or lots to buy so that, if your stop loss is hit, you lose only a fixed, pre-planned portion of your capital. It keeps a single bad trade from doing serious damage to your account.
How to use this calculator
- Enter your total trading capital.
- Set the percentage of capital you are willing to lose on this trade (1–2% is a common rule).
- Enter your planned entry price and stop loss.
- For futures and options, add the lot size to get the number of whole lots.
Formula
- Amount at risk = Capital × Risk %
- Risk per share = |Entry price − Stop loss|
- Position size = Amount at risk ÷ Risk per share (rounded down)
- Position value = Position size × Entry price