Trade Calculator

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Trade Position Sizing Calculator
Position Size (Shares/Units)Risk Amount Calculation
Results:
Enter values and click Calculate.
function calculateTrade(){var balance=parseFloat(document.getElementById('account_balance').value);var riskPct=parseFloat(document.getElementById('risk_percent').value);var entry=parseFloat(document.getElementById('entry_price').value);var stop=parseFloat(document.getElementById('stop_loss').value);var showSteps=document.getElementById('steps').checked;if(isNaN(balance)||isNaN(riskPct)||isNaN(entry)||isNaN(stop)){alert('Please enter valid numerical values.');return;}if(entry===stop){alert('Entry price and Stop Loss cannot be the same.');return;}var riskAmt=balance*(riskPct/100);var stopDistance=Math.abs(entry-stop);var positionSize=riskAmt/stopDistance;var totalValue=positionSize*entry;var html='
';html+='Position Size: '+positionSize.toFixed(2)+' Units
';html+='Total Risk: $'+riskAmt.toFixed(2)+'
';html+='Position Value: $'+totalValue.toFixed(2)+'
';if(showSteps){html+='
';html+='Step 1: Risk Amount = $'+balance+' × '+(riskPct/100)+'
';html+='Step 2: Stop Distance = $'+entry+' – $'+stop+' = $'+stopDistance.toFixed(2)+'
';html+='Step 3: Units = $'+riskAmt.toFixed(2)+' / $'+stopDistance.toFixed(2);html+='
';}html+='
';document.getElementById('answer').innerHTML=html;}

Calculator Use

A trade calculator is an essential tool for traders and investors to manage risk effectively. By using this tool, you can determine exactly how many shares, contracts, or units of an asset you should purchase based on your specific risk tolerance and account size. This prevents the common mistake of "over-leveraging," which often leads to significant account drawdowns.

To get started, simply enter your current account balance, the percentage of that balance you are willing to risk on a single trade, your planned entry price, and your protective stop-loss level.

Account Balance
The total equity currently available in your trading account.
Risk Per Trade (%)
The maximum percentage of your total capital you want to lose if the trade hits your stop loss (common practice is 1% to 2%).
Entry Price
The price at which you intend to buy (for long trades) or sell (for short trades).
Stop Loss Price
The price level where you will exit the trade to prevent further losses if the market moves against you.

How It Works

The math behind a trade calculator relies on the "fixed fractional" position sizing model. This ensures that the dollar amount you lose is constant relative to your stop loss distance. The formula used is:

Position Size (Units) = (Account Balance × Risk %) / (Entry Price – Stop Loss Price)

  • Risk Amount: This is the total dollar value at stake (Balance × Risk %).
  • Price at Risk: The difference between your entry and stop loss.
  • Unit Count: Dividing the total risk by the per-unit risk tells you how many units to buy.

Calculation Example

Example: You have a $50,000 trading account. You see a setup in Apple (AAPL) stock. You want to buy at $150.00 and place your stop loss at $145.00. You decide to risk 1% of your account on this trade.

Step-by-step solution:

  1. Calculate Risk Amount: $50,000 × 0.01 = $500.
  2. Calculate Stop Distance: $150.00 – $145.00 = $5.00.
  3. Calculate Position Size: $500 / $5.00 = 100 shares.
  4. Total Trade Value: 100 shares × $150.00 = $15,000.
  5. Result: You should buy 100 shares.

Common Questions

Why should I use a trade calculator?

Without a calculator, most traders guess their position size. This leads to taking too much risk on trades with wide stops or too little risk on trades with tight stops. A calculator ensures consistency across all your trades regardless of the asset's price or volatility.

What is a safe risk percentage?

Professional risk management usually dictates risking between 0.5% and 2% of your total account equity per trade. Risking more than 5% per trade can lead to "ruin" (losing the entire account) during a normal losing streak.

Does this work for Forex and Crypto?

Yes. While the term "shares" is used for stocks, the math for "units" or "lots" in Forex and Crypto remains identical. For Forex, ensure you are calculating the pip value correctly relative to your account currency.

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