2026-06-10
Position sizing for risk management
A neutral explanation of position sizing as a risk management calculation, not investment advice.
Position sizing estimates how much exposure corresponds to a chosen account risk and stop distance. It is a risk management calculation, not a prediction and not investment advice.
Use the Position Size Calculator to estimate units from account size, risk percentage, entry, and stop values.
What the calculation includes
The basic formula is risk amount divided by risk per unit. If the risk amount is 100 and the entry-stop distance is 5, the estimated size is 20 units.
What it excludes
Real trading outcomes can be affected by fees, slippage, leverage, liquidity, gaps, and execution quality. Use the output as one input in a broader review process.