Trading Risk Calculator
Important
Trading involves risk. This calculator is for educational purposes only and does not constitute financial advice.
Calculate the ideal position size for a trade based on your account size, risk tolerance, entry price, and stop-loss level to manage risk effectively.
How to use the Trading Risk Calculator
- Enter your trading account size.
- Enter how much of the account you will risk per trade (for example 1%).
- Enter your entry price and stop-loss price.
- Click Calculate to see position size and position value.
Formula used
Worked example
₹5,00,000 account, 1% risk, entry ₹500, stop-loss ₹480
Risk amount = ₹5,000
Risk per share = ₹20
Position size = 250 shares; position value = ₹1,25,000
The 1–2% rule
Professional traders limit the loss on any single trade to 1–2% of capital. With 1% risk, even 10 losing trades in a row leave about 90% of the account intact. Fix the stop-loss first based on the chart, then let position size follow — not the other way round. Remember that gaps can skip past a stop-loss, and brokerage, STT and slippage add to real losses. Trading carries a high risk of loss; this calculator is for risk planning, not investment advice.
Tips for accurate results
- Decide the stop-loss before entering the trade.
- Check that position value is within your available margin.
- Aim for a reward-to-risk ratio of at least 2:1.
Frequently Asked Questions
Most traders use 1–2% of their account.
Risk amount divided by the difference between entry and stop-loss.
Yes; the calculator uses the absolute difference.
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Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026
Frequently Asked Questions
What is position sizing in trading?
Position sizing determines how many shares or contracts to buy based on your risk tolerance, ensuring no single trade can cause excessive damage to your account.
How much should I risk per trade?
A common rule is to risk no more than 1-2% of your total trading account on any single trade, helping preserve capital through inevitable losing trades.
What is a stop-loss level?
A stop-loss is a predetermined price at which you'll exit a losing trade to limit further losses. It's set based on technical analysis or a fixed risk amount.