How This Calculator Works
Estimate how many shares fit within a chosen risk limit. Enter your investable capital, maximum risk percentage, price per share, and stop-loss to calculate capital at risk, risk per share, units, and position value.
| Input | What to enter |
|---|---|
| Investable capital | The total capital available for your trading plan. |
| Risk tolerance | The maximum percentage of capital you intend to risk on this trade. |
| Price and stop-loss | The entry price and either a stop-loss percentage or stop-loss price. |
How to Use the Calculator
- Enter your total investable capital.
- Set the maximum percentage you are prepared to risk.
- Enter the share price and choose a percentage or price stop-loss.
- Calculate the estimated units and confirm the total position value fits your capital.
Frequently Asked Questions
What is position sizing?
Position sizing determines how many shares to trade based on available capital and the amount you are prepared to lose if the stop-loss is reached.
What is capital at risk?
Capital at risk is the selected risk percentage multiplied by total investable capital.
Why can calculated position value exceed my capital?
A very small risk per share can mathematically produce a large number of units. The final position must still be limited by available capital and market liquidity.