Position Size Calculator

How position sizing works

Position sizing keeps a single trade from doing outsized damage to your account. The formula:

risk $ = balance × risk% → position $ = risk $ ÷ stop distance%

Example: with a $10,000 balance and 1% risk per trade, you risk $100. If entry is $50,000 and your stop-loss is $49,000, the distance to stop is 2%. Position size = $100 ÷ 2% = $5,000 notional, or 0.1 units at $50,000. Leverage only changes how much margin you post for that $5,000 position — it does not change how much you risk.