Position size calculator
Enter your account size, the percentage you plan to risk and where your stop goes. The calculator shows position size, required margin and the risk to reward ratio. No sign-up, everything is calculated in your browser.
How position size is calculated
Position size comes from three things: how much money you are ready to lose, where the stop is and where you enter. First the risk amount is calculated, then it is divided by the distance to the stop.
- Risk amount = account size × risk percentage ÷ 100
- Price distance to stop = |entry price - stop price|
- Position size (units) = risk amount ÷ price distance to stop
- Position value = position size × entry price
- Required margin = position value ÷ leverage
Worked example
The account holds 1,000, you risk 1 %, which is 10. Entry 80,000, stop 78,000, price distance to the stop 2,000. Position size: 10 ÷ 2,000 = 0.005 units. Position value: 0.005 × 80,000 = 400, which is 40 % of the account. If the stop is hit you lose 10. If price reached the 84,000 target, the result would be 20, an R:R of 1:2. The numbers are made up and are not a trading recommendation.
Worth knowing
- Position value can exceed the account size. Then leverage is needed, and leverage adds liquidation risk.
- Leverage does not change the risk amount, which is set by the stop and the position size. Leverage only changes the margin needed and the liquidation price.
- A stop does not always fill at the exact price. More on that: slippage.
Frequently asked questions
How do I calculate position size in crypto trading?
What percentage of the account should I risk per trade?
Does the calculator include fees and slippage?
How does leverage work in the calculator?
Are the numbers I enter sent to a server?
You can practise position size and stops in the Skenuok app, with real charts.