Position Size Calculator
The single most important calculation in trading. Enter your account, the risk you’ll accept, your entry and stop-loss — and get the exact number of shares to buy.
- You riskRs. 2,000
- Risk / shareRs. 20
- Position valueRs. 50,000
- Account exposure50%
How it works
Great traders size their trades from risk, not gut feeling. The formula is simple:
A worked example
Account Rs. 1,00,000, risking 2% (Rs. 2,000). You buy at Rs. 500 with a stop at Rs. 480 — that’s Rs. 20 of risk per share. So you buy Rs. 2,000 ÷ Rs. 20 = 100 shares. If the stop hits, you lose exactly Rs. 2,000 — no more.
Why position sizing matters more than picking
You can be right less than half the time and still grow your account — if your losses are small and controlled. Position sizing is what keeps a losing streak survivable. It is the foundation every professional builds on.
Tips for using it well
- Keep risk between 0.5% and 2% per trade while you’re learning.
- Always place a real stop-loss at the price you used here.
- Round down — never up — to stay within your risk.
- Re-check the number whenever your account balance changes.
Frequently asked questions
How do you calculate position size?
Position size = (account × risk %) ÷ (entry − stop). It gives the share count that keeps your loss within your risk limit if the stop is hit.
What is the 2% rule?
Never risk more than 2% of your account on one trade, so no single loss can seriously hurt your capital.
Is this calculator free?
Yes — free, no signup. Practise the sizing on StockYatra’s simulator with virtual coins.
More free tools
Practise this sizing risk-free
Open a free StockYatra account, get 10,000 virtual coins, and place real orders on live-simulated markets.
Get the app →