MTS Institute / Position size calculator
Position size calculator
Enter capital, risk per trade, entry and stop loss to get the exact quantity to trade.
How it works
Position sizing decides how much to buy so that a stop loss costs you a fixed share of capital. Formula: quantity = (capital × risk percent) ÷ (entry minus stop).
Example: with 5,00,000 capital, 1 percent risk, entry 1,000 and stop 970, you risk 5,000 and buy 166 shares.
Questions
How much should I risk per trade?
Many systematic traders risk between 0.5 and 2 percent of capital per trade, so a losing streak cannot wipe them out.
Why size by risk and not by amount?
Sizing by risk keeps every loss the same size, whatever the stock or the stop distance. That is what makes results testable.
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Take the free course →For education only. Results are estimates based on the numbers you enter and are not investment advice.