Position Size & Risk/Reward Calculator
The position size follows from the amount you are willing to lose, divided by the distance to your stop. Nothing else about the trade changes your loss if the stop is hit.
Risk amount: 100.00 USD
Stop distance: 4.00%
Position size: 2500.00 USD (25.0% of account)
Formula: position = risk amount / stop distance.
How this is calculated
position size = risk amount ÷ stop distance %, where risk amount = account × risk%.
Assumptions: stop is executed exactly (in reality slippage and gaps can make losses larger); no fees included; risk % is per trade, not per portfolio.
When this fails: extreme volatility, illiquid markets, or leveraged positions can lose more than the planned risk amount.