Free calculator
Position size calculator
Position size = risk amount ÷ distance to your stop. Risk 1% of a $10,000 account ($100) with a stop $800 below an $80,000 entry, and the position is 0.125 BTC, worth $10,000. The calculator does the same for any market.
The formula
- Risk amount = account balance × risk per trade. $10,000 × 1% = $100.
- Stop distance = |entry − stop|. $80,000 − $79,200 = $800.
- Position size = risk amount ÷ stop distance. $100 ÷ $800 = 0.125 BTC.
- Position value = size × entry = $10,000. Divided by the account balance it gives the leverage you need: 1× here.
With fees, the calculator adds the cost of entering and exiting to the loss at the stop, so the position is a little smaller and the loss still matches your risk.
Worked examples
| Market | Account | Risk | Entry | Stop | At risk | Position size | Position value |
|---|---|---|---|---|---|---|---|
| Bitcoin | $10,000 | 1% | 80,000 | 79,200 | $100 | 0.1250 BTC | $10,000 |
| Gold | $10,000 | 1% | 4,100 | 4,059 | $100 | 2.4390 XAU | $10,000 |
| US 500 | $10,000 | 1% | 7,700 | 7,623 | $100 | 1.2987 units | $10,000 |
Common questions
How do I calculate position size?
Divide the amount you are willing to lose by the distance from your entry to your stop. With $100 at risk and a stop $800 away, the position is 0.125 BTC.
What percentage of my account should I risk per trade?
Many traders use 0.5% to 2%. The calculator works with any number; the lower the risk, the longer a losing streak you can survive.
Does leverage change my position size?
No. Leverage only changes how much margin you post. The size comes from your risk and your stop; leverage is what you need to open it.
Does it work for gold, oil and indices?
Yes. Pick the market for the unit name, or type any prices: the formula is the same for every market.
Link to this calculator
Free to link from your site, course or guide:
<a href="https://swiftedge.uk/position-size-calculator">Position size calculator by Swiftedge</a>