Position Sizing & Risk Planner
Estimate position size, cash exposure, stop-loss risk, and reward-to-risk from account equity and trade assumptions.
Position sizing connects a planned entry and stop level to a predefined amount of account risk. Enter account equity, the percentage of equity you are willing to risk on this idea, entry price, stop price, and an optional target price. The result is a mathematical sizing estimate—not a suggestion to take the trade.
Position estimate
Risk calculations and caveats
Risk budget equals account equity multiplied by the chosen risk percentage. Estimated units equal the risk budget divided by the per-unit distance between entry and stop plus estimated per-unit costs, then rounded down to the selected trade increment and capped by the maximum exposure assumption. Potential reward is estimated from entry to target for the resulting quantity.
A stop order may execute at a worse price during gaps or fast markets. This simple model does not include leverage rules, margin calls, currency conversion, short-sale borrow costs, options Greeks, liquidity, slippage beyond the cost input, or correlated positions. Portfolio-level risk can be much higher when several positions depend on the same market driver.
A practical note on Position Sizing & Risk Planner
The question worth answering: This page is most useful when you focus on sizing a position from a defined loss budget. Estimating a position size from account equity, a chosen risk limit and an exit level. Start by recording the input source, the date or period covered, and any assumption you had to supply yourself. That makes the result easier to reproduce and helps another person understand what the output actually says.
How to use the result responsibly
Read the output alongside the inputs rather than as a stand-alone verdict. Change one assumption at a time and observe whether the conclusion changes materially. If the tool accepts a range, test more than one plausible case; if it accepts a file or pasted data, preserve an untouched copy of the original. Where the result will support a published claim or an important decision, keep a brief record of the method and source date.
A mistake specific to this kind of task
A planned stop price does not cap the realized loss during gaps, slippage, illiquid trading or fast markets. This is why the output should be described as an estimate, diagnostic or comparison where appropriate—not as a guarantee. Avoid mixing currencies, periods, definitions or data sources merely because their labels look similar.
Independent check before acting
Check the instrument’s tick value, contract multiplier, currency and liquidity; stress-test a worse exit than the planned level. If the result conflicts with a statement, official record, provider terms or the original dataset, investigate the difference before relying on it. The tool is intended to make a task clearer, not to replace the source system or professional advice when the consequences are material.
Reader takeaway: Keep the assumptions visible, verify the underlying evidence and use this result as one part of a reasoned decision.
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