Calculators·🎯

Position Sizer

Size a trade so your stop-loss risks only the % of capital you choose. Set the stop yourself, or derive it from the stock's real 14-day ATR (volatility).

Shares to buy125
Position value₹1,25,000
Capital exposure25.00%
Max risk amount₹5,000
Risk per share₹40

If price hits your stop at ₹960, you lose only 1% (₹5,000) of your capital.

Position Sizer

A position sizer calculates how many shares to buy so that if your stop-loss is hit, the rupee loss equals a fixed percentage of your total capital that you're willing to risk — not the number of shares your total capital can afford.

Formula

Shares = floor(Risk Amount / Per-Share Risk), where Risk Amount = Capital × Risk% and Per-Share Risk = Entry Price − Stop-Loss Price.

Worked example

Input: ₹5,00,000 capital, 1% risk per trade, entry ₹250, stop-loss ₹235

Result: Risk amount ₹5,000 ÷ per-share risk ₹15 ≈ 333 shares

Frequently asked

Why size by risk instead of just by how much I can afford?

Sizing by affordability ignores the stop-loss distance — a wide stop on an affordable position can risk far more of your capital than intended. Risk-based sizing keeps every trade's potential loss consistent.

What risk percentage should I use per trade?

Many risk-management frameworks suggest 0.5-2% of capital per trade so that a string of losses doesn't meaningfully damage the account; this is a starting convention, not a rule.

Position Size Calculator: how it works

A position sizer converts a risk budget into a share quantity: given capital, the percentage you are willing to lose, and the distance to your stop, it returns the size that caps the loss at that budget.

Formula

Quantity = (capital × risk %) ÷ (entry price − stop-loss price).