About the Position Size Calculator
What is the Position Size Calculator?
Good traders decide how much to lose before they decide how much to buy. This position size calculator divides the rupees you are willing to risk by the distance to your stop-loss.
Risking 1–2% of capital per trade means a string of losses cannot wipe you out.
How to use the Position Size Calculator
- Trading Capital (₹) (sample: 5,00,000)
- Risk per Trade (% of capital) (sample: 1)
- Entry Price (₹) (sample: 1,000)
- Stop-Loss Price (₹) (sample: 970)
- Press Calculate Position Size (results also refresh as you type). The result card shows the Quantity to Buy, along with Amount at risk, Risk per share, Position value and Position as % of capital.
Formula used
Quantity = (Capital × Risk %) ÷ |Entry − Stop-loss|
Slippage and gaps can make actual losses larger than planned.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Trading Capital (₹) | 5,00,000 |
| Risk per Trade (% of capital) | 1 |
| Entry Price (₹) | 1,000 |
| Stop-Loss Price (₹) | 970 |
| Result | Value |
|---|---|
| Quantity to Buy | 166 |
| Amount at risk | ₹5,000 |
| Risk per share | ₹30 |
| Position value | ₹1,66,000 |
| Position as % of capital | 33.2% |
| Stop-loss distance | 3% |
Tips for using the Position Size Calculator
- Keep risk per trade at 1–2% of capital.
- Wider stops mean smaller positions for the same risk.