Free Tool

Position Size Calculator

Enter your account size, entry price, and stop-loss to instantly calculate the correct position size for any risk level. Set a target exit price to see your R:R, or pick a desired R:R and get the target price.

Trade Setup

$
%
$
$
$
Long Position
Position Size
$6,500
65.0% of account
Risk : Reward
1 : 2.0
2.0R
Risk Amount
$200
2.0% of account
Potential Profit
+$400
+4.0% of account
Target Exit
$69,000.00
SL distance: 3.08%
Leverage
0.65x
No leverage needed

Price Levels

Risk vs Reward

Risk (Stop Loss)

Why position sizing matters

Risk Per Trade

Professional traders typically risk 1-2% of their account per trade. This ensures no single loss can significantly damage the account. Even a string of 10 losses only draws down 10-20%.

Stop-Loss Distance

The distance between your entry and stop-loss determines how many units you can buy. A wider stop means fewer units (smaller position) for the same dollar risk. Tighter stops allow larger positions but get hit more often.

Risk-Reward Ratio

A 1:2 R:R means you stand to gain $2 for every $1 risked. With a 1:2 ratio, you only need to win 34% of trades to break even. Higher ratios give your strategy more room for losing streaks.

Leverage Awareness

When position value exceeds account size, you are using leverage. A 5x leveraged position means a 20% adverse move wipes out the account. Always know your effective leverage before entering a trade.

Want to backtest these position sizing rules?

Quanthop lets you define custom risk rules, backtest them on historical data, and validate with Walk-Forward Analysis before risking real capital.

See Pricing