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Account & Risk
$
%
Trade Levels
%
Conservative (1:1) Target: 1:2.0 Aggressive (1:10)
Position Sizing
Position Size
0
0 Lots
Cash at Risk $0.00
Capital Required $0.00
Reward/Risk Ratio -
Est. Net Profit $0.00
Sensitivity Matrix: Stop Loss Scenarios
Stop Price Distance Position Size Risk Amount
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About

Trading is fundamentally an exercise in probability management, not prediction. The primary reason retail traders fail is not a lack of winning trades, but poor Risk Management. A single uncontrolled loss can wipe out weeks of gains. This calculator is designed to strictly enforce mathematical discipline, ensuring you never risk more than your predetermined capital threshold (e.g., 1% or 2%).

Unlike basic calculators, this tool accounts for Asset Class nuances (Standard vs. JPY Forex pairs, Crypto decimals), incorporates Exchange Fees into the Net Profit calculation, and generates a Sensitivity Matrix. This matrix visualizes how slight adjustments in your Stop Loss price drastically alter your allowable Position Size, allowing for better strategic planning before execution.

risk management position sizing forex calculator crypto trading stop loss

Formulas

The core logic protects your account balance B by solving for Position Size S based on a fixed Risk Amount R.

Risk Amount R=
B × Risk% (if %)FixedCash (if $)

Once the risk is defined, we calculate the allowable position size:

SPosition
=
R|Entry StopLoss|

For the Risk-to-Reward Ratio (RR):

RR =
|Entry TakeProfit||Entry StopLoss|

Reference Data

Asset ClassStandard DecimalsTypical Fee StructurePosition Unit
Forex (Standard)4 (e.g. 1.1050)Spread + Commission (~$3-7/lot)Lots (100k units)
Forex (JPY Pairs)2 (e.g. 148.50)Spread + CommissionLots (100k units)
Cryptocurrency2-8 (e.g. 0.00045120)Percentage (0.1% - 0.5%)Coins / Tokens
US Stocks2 (e.g. 150.25)Fixed ($0 - $0.005/share)Shares
Indices (CFDs)1-2 (e.g. 4500.5)Spread IncludedContracts

Frequently Asked Questions

This is the leverage effect of tight stops. Mathematically, as the distance |Entry - StopLoss| approaches zero, the allowable Position Size approaches infinity to maintain the same fixed dollar risk. A tighter stop allows for a larger position, which amplifies both potential profit and the speed at which you might get stopped out.
Simply toggle the "Short" switch in the tool. The logic reverses: your Stop Loss must be higher than your Entry Price. The calculator automatically handles the absolute difference, so you don't need to enter negative numbers.
This tool uses a "Quote Currency" risk model. If your account is in USD and you trade EUR/USD, the calculation is exact. If you trade a pair where the Quote currency is different from your Account currency (e.g., Account in USD, trading AUD/CAD), the "Risk Amount" result is technically in CAD. You would need to convert that final CAD risk back to USD to be 100% precise, though most traders treat the quote currency as roughly 1:1 for estimation in major pairs.
The calculator will function mathematically, but practical trading constraints (margin requirements) may prevent you from opening the position. If the "Total Capital Required" exceeds your "Account Balance" multiplied by your broker's max leverage, the trade is impossible.