How to use the Position Size Calculator
- Enter your trading capital and the % you are willing to risk on this trade.
- Enter your entry price and stop-loss price.
- Optionally add a target to see the reward.
- Buy the quantity shown.
Formula
Quantity = (Capital × Risk%) ÷ |Entry − Stop-loss|
Example: ₹5,00,000 capital, 1% risk = ₹5,000. Entry ₹1,000 with stop ₹980 → risk ₹20 per share → buy 250 shares.
The 1–2% rule
Many professional traders risk only 1–2% of capital per trade. Even after 10 losing trades in a row, the account is down only about 10–18%, leaving plenty to recover.
Frequently asked questions
Short trades?
Yes. If the stop-loss is above the entry, the calculator treats it as a short trade.
What about gaps?
A stock can open beyond your stop-loss, causing a bigger loss than planned. Size positions a little smaller for volatile stocks and around results or news.