How to Use a Position Size Calculator
Derive position size from account risk, stop distance and entry price instead of choosing leverage first.
Start With the Loss Budget
Position sizing starts not with direction but with the maximum acceptable loss. A common approach caps one-trade risk at a small share of equity, then derives notional size from the stop distance. A wider stop requires a smaller position.
The Correct Input Order
Enter account equity, risk percentage, entry and stop. The calculator’s notional value is a risk-constrained ceiling, not a target you must fill. Leverage then determines margin usage; it should not determine the loss budget.
Three Final Checks
Check that projected loss matches the budget, liquidation is well beyond the stop, and fees/slippage are included. If the stop sits inside normal noise, a mathematically correct size can still be repeatedly stopped out. Sizing does not replace trade logic.
