Position size and risk calculator
Work out how many units, coins or ounces to buy or sell so that a stop-loss hit costs only the amount you chose to risk. Enter your account size, risk per trade, entry and stop to get position size, position value, margin, reward:risk, fees and take-profit levels from 1R to 4R. It works for crypto, gold, silver, stocks and futures, and runs entirely in your browser.
Result
Position size
20 units
Long trade (stop below entry)- Risk amount
- $1,000.00
- Stop distance
- 50 (2.50%)
- Position value
- $40,000.00
- Loss if stop is hit (before fees)
- -$1,000.00
- Fee cost (round trip)
- $40.00 (0.04R)
| Target | Price | Profit |
|---|---|---|
| 1R | 2,050 | $1,000.00 |
| 2R | 2,100 | $2,000.00 |
| 3R | 2,150 | $3,000.00 |
| 4R | 2,200 | $4,000.00 |
This is an educational tool, not financial advice. It only does arithmetic on the numbers you enter. It cannot make a trade profitable, and it does not model slippage, spreads, funding or taxes. Read the risk disclaimer.
How to use the position size calculator
Set your risk
Enter your account size and the percentage you accept to lose if the stop is hit. The default is 1%.
Enter entry and stop
Type the price you plan to enter and the price where the idea is proven wrong. The stop decides the size.
Read the size
Use the position size, check the margin and fees, and compare the take-profit levels at 1R to 4R.
The formula
position size = risk amount / stop distanceRisk amount is account size multiplied by risk percent. Stop distance is the absolute difference between entry and stop. Position value is size multiplied by entry price.
Worked example (illustrative round numbers)
These numbers are made up to keep the arithmetic easy and are not a trade idea. Account 100,000, risk 1%, entry 2,000, stop 1,950.
- Risk amount = 100,000 x 1% = 1,000
- Stop distance = 2,000 - 1,950 = 50 (2.5% of entry)
- Position size = 1,000 / 50 = 20 units
- Position value = 20 x 2,000 = 40,000, so a 10x leverage setting needs 4,000 of margin
- A target at 2,100 is 2R: 20 x 100 = 2,000 of profit before fees
- A 0.1% round-trip fee costs 0.1% x 40,000 = 40, which is 0.04R
Why size by risk first
Most traders pick a position size by feel or by how much margin an exchange allows. Risk-first sizing works the other way round: you decide the most you will lose on the idea, then let the stop distance set the size. A wide stop gives a small position and a tight stop gives a larger one, but the loss at the stop stays the same. That keeps every trade comparable, makes losses predictable and makes it easier to judge your results in R.
Once the size is set, you can plan the exit as well. Key price levels often make natural stops and targets, so check the free daily key levels and read our trading guides to learn how to place them.
VMTradeAlert calls and emails you when price reaches your level: see crypto price alerts and gold price alerts.
Position size calculator FAQ
What is R in trading?
R is the amount you risk on one trade, which is the distance from entry to stop-loss multiplied by your position size. If you risk 1,000 and the trade reaches a target that would earn 2,000, that is a 2R result. Counting results in R lets you compare trades of different sizes on one scale.
What is a good risk per trade?
There is no single correct number. Many traders keep it small, commonly between 0.5 and 2 percent of the account, so that a run of losing trades does not do serious damage. This calculator shows a warning above 3 percent. The right figure depends on your strategy, your experience and how much loss you can accept.
How do fees change the position size?
Fees do not change the size from this formula, because size is set by your risk amount and stop distance. They do add to the cost of the trade: a round-trip fee of 0.1 percent on a large position is a fixed money cost, shown here in money and in R. The wider your stop is relative to the position, the smaller the fee is as a share of your risk. Slippage on a stop order can also make a real loss larger than planned, and this calculator does not model it.
Does it work for gold, crypto and futures?
Yes for the sizing maths, as long as you enter the price in the same unit you trade. For spot crypto and gold the result is in coins or ounces. For futures and CFDs, divide the unit result by the contract size and round down to a whole number of contracts. Check each contract specification with your broker or exchange before you rely on a number.
Why not size a trade by margin or leverage?
Margin only tells you how much collateral the exchange locks up, not how much you can lose. Your loss is set by the position size and the distance to your stop. Sizing by margin ties your risk to the leverage setting instead of to your plan, so two trades with the same margin can lose very different amounts. Size by risk first, then use leverage only to work out the margin you need.
Can this calculator make a trade profitable?
No. It only works out how large a position is for the loss you have chosen to accept if your stop is hit. Whether a trade wins depends on your entry, your stop, the market and execution. It is an educational tool, not financial advice.
Educational tool only, not advice. Trading is risky and you can lose more than you intend, for example when a stop fills at a worse price. See the risk disclaimer.