🧮 Position Size Calculator

Enter your account size, risk percentage, entry and stop-loss — get the exact quantity to buy or short so a stopped-out trade costs only what you planned.

Free tool — values never leave your browser. For these numbers computed automatically from your real trades, create a free TradeDiary account.

How position sizing works

Position sizing answers the only question you fully control before a trade: how much do I lose if I'm wrong? You pick a fixed fraction of your account to risk (most traders use 0.5%–2%), measure the distance from entry to stop-loss, and let those two numbers decide the quantity — not conviction, not tips.

Quantity = (Account × Risk%) ÷ |Entry − Stop-loss|

Example: with a ₹5,00,000 account risking 1%, your risk budget is ₹5,000. Buying at ₹250 with a stop at ₹240 risks ₹10 per share, so the position is 500 shares (₹1,25,000 of stock). If the stop hits, you lose ₹5,000 — exactly as planned.

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Frequently asked questions

What percentage of my account should I risk per trade?

Most systematic traders risk 0.5% to 2% per trade. At 1%, a streak of 10 straight losses draws the account down roughly 10% — recoverable. At 10% risk per trade, the same streak destroys 65% of the account.

Why does the stop-loss determine my position size?

Because risk = quantity × distance to stop. For a fixed rupee risk, a tighter stop allows a larger quantity and a wider stop forces a smaller one. Deciding quantity before deciding the stop is backwards.

Does this work for intraday and F&O?

Yes — the formula is the same. For F&O, round the quantity down to whole lots; for intraday with leverage, the calculator's position value is the exposure, not the margin blocked.