Position Sizing Calculator

Frequently Asked Questions

What is position sizing?

Position sizing determines the number of shares to buy based on your total capital, risk tolerance, and stop-loss level.

How do you calculate position size?

Max Risk = Capital × Risk%. Position Size = Max Risk ÷ (Entry Price - Stop Loss). Number of Shares = floor(Position Size ÷ Entry Price).

Why is position sizing important?

Proper position sizing manages risk by ensuring no single trade is too large relative to your portfolio.