What This Calculates
Risk amount, units to buy or sell, and notional position value.
Formula
Units = risk amount / absolute difference between entry price and stop price
Example
With a 10000 account, 1% risk, 50 entry, and 47.50 stop, the risk amount is 100 and the position size is 40 units.
Notes Before You Use It
- The calculator assumes the stop executes near the chosen stop price.
- Gaps, slippage, liquidation, and exchange outages can increase realized loss.
- Use lower risk when trading volatile or illiquid markets.
FAQ
What risk percentage should I use?
Many traders start with a small fixed fraction, such as 0.25% to 1%, but the right number depends on strategy and volatility.
Does this include leverage?
It gives notional size. Leverage changes margin required, not the price distance that defines trade risk.
What if my stop is above entry?
That can represent a short trade. The calculator uses absolute distance, so the risk math still works.