Position Sizing Calculator
Frequently Asked Questions
Position sizing refers to the process of determining how much of a particular asset or stock to buy based on the amount of risk you’re willing to take in a trade.
The position sizing calculator helps you calculate how many shares to buy based on your capital, risk percentage, stop loss, and the share price. It also calculates the capital required for the trade and the reward-to-risk ratio (if a target price is provided).
Leverage allows you to control a larger position than your available capital. By applying leverage, you can increase the size of your trade without needing to invest the full capital upfront.
The reward-to-risk ratio is a measure of the potential reward of a trade compared to the risk. It helps traders determine if the potential reward justifies the risk they’re taking on a trade.
A stop loss is a risk management tool that automatically closes a trade when the price reaches a specified level to limit potential losses.