When Should You Use a Position Size Calculator?
Use this calculator before every trade to determine the correct number of shares to buy. It is especially useful when:
• You are trading stocks at different price levels
• You want to keep risk consistent across all trades
• You are building a portfolio with multiple positions
• You are new to trading and learning risk management
How It Works
Set Your Risk
Decide what percentage of your account you are willing to lose on this trade.
Define the Trade
Enter your entry price and where you will place your stop-loss.
Get Your Size
The calculator divides your dollar risk by the per-share risk to get the number of shares.
Example
Scenario: You have a $25,000 account and want to risk 2% on a trade. You plan to buy NVDA at $130.00 with a stop-loss at $124.00.
Calculation: Risk amount = $25,000 × 2% = $500.00. Risk per share = $130.00 - $124.00 = $6.00. Shares = $500.00 ÷ $6.00 = 83 shares.
Result: Buy 83 shares of NVDA for a position value of $10,790.00. If your stop-loss is hit, you lose exactly $498.00 (1.99% of your account).
Frequently Asked Questions
Related Tools
Quick Reference Table
| Risk % | Account | Risk $ | Stop Distance | Shares |
|---|---|---|---|---|
| 1% | $10,000 | $100 | $3.00 | 33 |
| 1% | $25,000 | $250 | $5.00 | 50 |
| 2% | $10,000 | $200 | $2.00 | 100 |
| 2% | $50,000 | $1,000 | $10.00 | 100 |
| 0.5% | $100,000 | $500 | $4.00 | 125 |