Position Size Calculator
Updated on 22 Oct 2026 · Checked by Aotob
Risking 1% of $20,000 with a stop at $47.50, buy 80 shares.
A $4,000 position that loses $200 if the stop is hit.
Position size
80shares
Risking 1% to 2% a trade means a run of ten losses costs 10% to 20% of the account, not all of it.
Show the working
20,000 × 1% = 200.00 at risk
÷ (50 − 47.5) = 80 shares
By risk per trade
| Risk | Shares | Position |
|---|---|---|
| 0.25% | 20 | 1,000 |
| 0.5% | 40 | 2,000 |
| 1% | 80 | 4,000 |
| 1.5% | 120 | 6,000 |
| 2% | 160 | 8,000 |
| 3% | 240 | 12,000 |
Questions people ask
How do I work out position size?
Money at risk ÷ risk per share. Risking $200 with a stop $2.50 below the entry is 80 shares.
How much should I risk per trade?
Many traders risk 0.5% to 2% of the account on each trade, so a losing streak doesn’t wipe them out.
What is reward to risk?
The distance to your target divided by the distance to your stop. At 2:1 you can be right only 40% of the time and still make money.
Updated 22 Oct 2026Source: National averages and published fee tables, checked October 2026Checked by AotobBefore commissions and slippage; stops can gap.Report an issue