Free position size calculator for traders. Determine optimal trade size based on account size, risk percentage, entry price, and stop loss levels.
Recommended: 1-2% per trade
Risk Amount
₹2,000
Position Size
₹40,000
Quantity to Buy
400 shares
Stop Loss
5.00%
Get AI-powered portfolio analytics, real-time alerts, and comprehensive market insights.
View Premium PlansThis calculator is for informational and educational purposes only. It does not constitute financial or investment advice. Consult with a qualified financial advisor before making investment decisions.
A Position Size Calculator helps traders determine the optimal number of shares or lots to buy based on their account size, risk tolerance, and stop loss level. This is one of the most critical risk management tools in trading. Proper position sizing ensures you never risk too much capital on a single trade, protecting you from catastrophic losses. The calculator uses your account size, risk percentage per trade, entry price, and stop loss price to calculate exactly how many shares you should buy. Professional traders always calculate position size before entering any trade.
Conservative traders risk 0.5-1% per trade, moderate traders 1-2%, aggressive traders 2-3%. Never risk more than 3% on a single trade. Most professional traders use 1-2% rule. With 2% risk, you can survive 50 consecutive losses. With 5% risk, just 20 losses wipe out your account. Start with 1% as a beginner.
Even with a 60% win rate, poor position sizing can destroy your account. Proper position sizing ensures losing trades don't hurt you significantly while winning trades compound your gains. It's the difference between a 10% loss (recoverable) versus a 50% loss (needs 100% gain to break even). Position sizing is the foundation of risk management.
For options, calculate differently: Risk Amount / Premium per lot = Number of lots. Example: ₹10,000 risk, ₹50 premium per share, lot size 75 = (₹10,000 / (₹50 × 75)) = 2.67, round down to 2 lots. Always account for lot sizes in derivatives. Options decay, so factor in time value loss.
No! Position size should be based on RISK, not dollar amount. A ₹50 stock with ₹2 stop loss requires 5x more shares than a ₹500 stock with ₹20 stop loss (for same risk). This is why billionaires can own few shares of expensive stocks but still manage risk properly. Focus on risk amount, not number of shares.
Three options: 1) Increase your stop loss distance (wider stop = smaller position), 2) Risk less percentage per trade (1% instead of 2%), 3) Skip the trade and find better opportunities with lower prices or tighter stops. Never exceed your account size trying to take a trade. No single trade is worth breaking risk rules.
Combine both: Never risk >2% per trade AND never have >20% of capital in single stock. Example: ₹10L account, 2% risk = ₹20K max loss per trade. If position requires ₹3L investment but risk is ₹20K, it's fine IF you have ₹7L elsewhere. Also consider sector exposure - don't put 50% in one sector.
Yes! During high volatility (VIX >25), reduce risk to 0.5-1%. During trending markets, maintain 1-2%. After losses, reduce size temporarily to regain confidence. After wins, increase slightly but never exceed 3%. Good traders are flexible - they're more aggressive when winning streak, conservative after losses.
Risking too much trying to 'make back losses quickly'. After a losing trade, traders often double position size to recover - this leads to blown accounts. Other mistakes: using same rupee amount instead of percentage, ignoring stop loss distance, trading beyond account size with margin. Discipline with position sizing separates professionals from gamblers.