Quick answer
Set the maximum percentage of your account you can lose on one trade. Then enter the planned entry and stop. The tool solves for quantity so the estimated stop loss, including fees, stays near that cash limit.
A position can still lose more during a gap, a liquidation, or severe slippage. Treat the output as an order-planning number and round down to a size your venue accepts.
How to use it
- 1Enter your account balance and the percentage you are prepared to risk on this setup.
- 2Choose crypto/stocks or forex. For crypto and stocks, set the direction, entry price, and stop price.
- 3Add a target to see reward-to-risk. Enter leverage only when margin is part of the trade.
- 4Round the calculated quantity down to the exchange's valid lot step and confirm the order's estimated loss before submitting.
Formula and method
Cash risk equals account balance multiplied by risk percentage. For crypto and stocks, risk per unit equals the absolute distance from entry to stop plus the estimated entry and exit fee per unit.
Position quantity equals cash risk divided by risk per unit. Notional equals quantity multiplied by entry price, while estimated margin equals notional divided by leverage. Forex lots divide cash risk by stop pips times the pip value, with commission added.
Worked example
With a $10,000 account and 1% risk, the cash budget is $100. An entry at $100 with a stop at $95 creates $5 of price risk per unit.
Ignoring fees, the position is 20 units and $2,000 notional. At 2x leverage, estimated initial margin is $1,000. A target at $110 offers $200 gross reward, giving a 2-to-1 reward/risk ratio.
Limits to know
- Stops can fill beyond the selected price during gaps, outages, or thin liquidity.
- The forex mode relies on the pip value you enter and does not convert between account currencies.
- The margin estimate excludes exchange maintenance tiers and liquidation fees.
- Portfolio correlation is outside the model. Seven separate 1% risks can behave like one much larger risk when markets move together.
Frequently asked questions
What position size should I use?
Choose a cash amount you can accept losing if the stop fills, then divide that amount by the loss per unit between entry and stop. This tool also includes entered fees.
Does leverage change the amount at risk?
Leverage lowers the initial margin needed for the same notional position. The stop distance and position quantity still determine the modeled trading loss, while liquidation can close a leveraged trade before its stop.
What pip value should I enter for forex?
Enter the value of one pip for one standard lot in your account currency. It is often $10 for a USD-quoted major pair, but pair, quote currency, and account currency can change it.
Why are fees included in risk per unit?
Entry and exit costs reduce the cash left in the account. Including them produces a slightly smaller and more conservative position size.