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🎯 Position Size Calculator

Find the exact number of shares or units to buy so you never risk more than you can afford on a single trade.

Shares to Buy
—
Capital Required —
Amount at Risk (₹) —
Risk per Share —
% of Account Used —

How it works

  • Risk Amount = Account Size × Risk %
  • Risk per Share = Entry Price − Stop Loss
  • Shares = Risk Amount ÷ Risk per Share
  • Most professional traders risk 1–2% per trade maximum
  • Never risk more than 5% of your account on a single trade
⚠️ This is a mathematical tool only. It does not constitute financial advice. Always do your own research before trading.

What is Position Sizing?

Position sizing answers the most important question in trading: how much to buy. It is the process of deciding how many shares, lots, or units to purchase based on your account size and how much you are willing to lose if the trade goes against you.

Professional traders never risk more than 1–2% of their account on a single trade. If your account is ₹5,00,000 and you risk 1%, your maximum loss on any trade is ₹5,000. The position size calculator does the math for you.

How to Use This Calculator

  1. Enter your total account size — the capital you have available for trading
  2. Set your risk per trade % — most traders use 1% or 2%
  3. Enter the entry price — the price at which you plan to buy
  4. Enter your stop loss price — the price at which you will exit if the trade fails
  5. Click Calculate — you will see exactly how many shares to buy

Frequently Asked Questions

What is the 1% rule in trading?

The 1% rule means you should never risk more than 1% of your trading account on a single trade. If your account is ₹10 lakh, maximum risk per trade is ₹10,000. This protects you from large drawdowns even after a string of losing trades.

How is position size calculated?

Position Size = Risk Amount ÷ Risk per Share. Where Risk Amount = Account Size × Risk %, and Risk per Share = Entry Price − Stop Loss. For example: ₹5L account, 1% risk, entry ₹500, SL ₹480 → Risk = ₹5,000, Risk/share = ₹20, Shares = 250.

Should I always use a stop loss?

Yes. A stop loss defines your maximum risk and makes position sizing possible. Without a stop loss, you cannot calculate position size, and you cannot control your risk.

Related calculators: Risk/Reward → P&L → Brokerage →

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