Why This Calculator Matters
Position sizing is one of the most important risk management tools. Per disclosures required by major regulators (ESMA in EU, ASIC in Australia, FCA in UK), 70-85% of retail CFD/forex traders lose money — and improper position sizing is widely cited as a leading cause. This calculator answers: "How much can I afford to risk per trade?"
FAQ
What is position sizing?
Position sizing determines how many units, lots, or shares to trade. It ensures that if your stop loss is hit, you only lose a predetermined percentage of your account.
What risk % should I use?
Most professional traders risk 0.5-2% per trade. The Kelly Criterion and Trade Expectancy can help refine this based on your specific edge and win rate.
Does this work for forex/crypto/stocks?
Yes — the formula is universal. For forex specifically, also use our Forex Lot Size Calculator which converts to standard/mini/micro lots.
Why is my stop loss important?
Without a defined stop loss, your potential loss is unlimited. A trade without a stop is gambling, not trading. Always know your max loss BEFORE entering.