Position Size Calculator

How many shares to buy from your capital, the risk you will accept and your stop-loss - with the target at the ratio you pick, from 1:1 to 1:4.

About the Position Size Calculator

The Position Size Calculator tells you exactly how many shares to buy so that, if your stop-loss is hit, you lose only the amount you decided in advance. Pick a risk-to-reward ratio of 1:1, 1:2, 1:3 or 1:4 and it shows the target that ratio implies, with the same position laid out at all four so you can compare them.

How to use it

  1. 1Enter your trading capital and the percentage of it you are willing to risk on this trade.
  2. 2Enter your entry price and your stop-loss price.
  3. 3Choose a ratio from 1:1 to 1:4.
  4. 4Read the quantity to buy, the position value, the amount at risk and the target - and compare the profit at every ratio in the table below it.

Frequently asked questions

What does 1:3 mean?

For every rupee you would lose if the stop is hit, the target makes three. On an entry of 100 with a stop at 95, the risk is 5 a share, so the 1:3 target is 115.

What risk percentage should I use?

Many traders risk between 0.5% and 2% of their capital per trade, so that a run of losing trades does not wipe out the account.

Why does the stop-loss decide the size?

Because the loss you can accept is fixed. A wider stop means fewer shares, so the money lost if you are wrong stays the same.

Does it include brokerage and taxes?

No. Add brokerage, STT and other charges on top; on small positions they can be a noticeable share of the risk.

What if the stock gaps below my stop?

Then the real loss can be larger than planned. Gaps are one reason to keep risk per trade small.