Position Size Calculator
Calculate the right number of shares or units based on your risk tolerance.
How to Calculate Position Size
Position sizing is one of the most important skills a trader can master. It determines how many shares or contracts to buy based on your account size and how much you are willing to risk on a single trade.
The Formula
Position Size (shares) = (Account Size × Risk %) ÷ |Entry Price - Stop Loss|
Step-by-Step Example
- Your account is $10,000
- You want to risk 2% of your account ($200)
- Entry price is $100, stop loss at $95
- Risk per share = $100 - $95 = $5
- Shares = $200 ÷ $5 = 40 shares
Why Position Sizing Matters
- Prevents overexposure on any single trade
- Keeps losses small and manageable
- Removes emotion from trade sizing decisions
- Ensures consistency across all your trades
Common Risk Percentages
Most professional traders risk between 0.5% and 2% of their account per trade. Beginners should start at the lower end (0.5-1%) until they have a proven edge and consistent strategy.
Track your risk automatically
LogYourTrade calculates position sizes, tracks R-multiples, and shows your risk exposure across all trades.
Start Free Trial