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Free position size calculator for stocks, forex & crypto

Position sizing is the most important risk management decision you make on every trade. This free calculator tells you exactly how many shares, lots, or units to trade based on your account size, risk tolerance, and stop loss distance.

How to use this calculator

Step 1: Enter your account balance (e.g., $10,000). Step 2: Enter your risk percentage per trade (recommended: 1-2%). Step 3: Enter your entry price and stop loss price. The calculator instantly shows your optimal position size.

Position Size Calculator

Formula: Position Size = (Account Balance × Risk %) ÷ (Entry Price − Stop Loss)

Example — Stocks: $10,000 account, 1% risk ($100), buy at $50, stop loss at $48. Risk per share = $2. Position size = $100 ÷ $2 = 50 shares

Example — Forex: $5,000 account, 2% risk ($100), EUR/USD entry at 1.1000, stop at 1.0950 (50 pips). Pip value for mini lot = $1. Position size = $100 ÷ 50 = 2 mini lots

Example — Crypto: $2,000 account, 1% risk ($20), BTC entry at $60,000, stop at $58,500. Risk = $1,500 per BTC. Position size = $20 ÷ $1,500 = 0.0133 BTC

Why position sizing matters

Without proper position sizing, a single bad trade can damage your account beyond recovery. The 1% rule ensures that even 10 consecutive losers only draw your account down by 10% — painful but recoverable. With 5% risk per trade, the same losing streak costs you 50%, requiring a 100% return just to get back to even.

Advanced considerations

Volatility adjustment: In highly volatile markets, use a smaller risk percentage. Correlation: If you have multiple open positions in correlated assets, reduce the size of each. Account drawdown: During a losing streak, recalculate position sizes based on your current (reduced) balance, not your starting balance.

AskTrade’s Risk Assessment Agent calculates optimal position sizes automatically for every trade it analyzes.

Disclaimer: This is for educational purposes only and does not constitute financial advice. Trading involves significant risk of loss.

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AskTrade analyses are AI-generated and do not constitute financial advice.