Result
Quantity (shares)
40
₹48,000 capital required
Actual risk
₹2,000
of ₹2,000 budget
Level ladder
- Maximum risk amount
- ₹2,000
- Risk per share
- ₹50.00 (4.17%)
- Capital required
- ₹48,000
- Actual risk at this quantity
- ₹2,000
What does this position size calculator do?
A position size calculator tells you how many shares to buy so that a stop-loss exit costs only a fixed share of your capital. It divides your rupee risk (capital × risk %) by the risk per share (entry − stop loss), rounds down to a whole share and caps the quantity at what your capital can actually buy.
How is position size calculated?
Position size is your rupee risk divided by the risk on one share. The rupee risk is capital multiplied by the risk percentage you choose, and the risk per share is the gap between your entry and your stop loss. The answer is rounded down to a whole share, so the actual loss at the stop can be slightly below your limit but never above it.
Quantity = floor( (Capital × Risk %) ÷ |Entry − Stop loss| )floor means round down. The gap is taken as a positive number, so the same formula works for a short trade where the stop sits above entry.- Enter your trading capital — the money set aside for trading, not your total savings.
- Enter the risk per trade as a percentage. 1% is the default; 2% is the ceiling most risk frameworks use.
- Enter the planned entry and stop-loss prices from your chart, for example just beyond the proximal and distal lines of a demand zone.
- Read the quantity, the capital required and the actual rupee risk the calculator returns.
What do the inputs and results mean?
Beyond the quantity, the most important output is the actual risk: the rupee amount you would lose if price reaches the stop. Because of rounding down, it is usually a little below the risk you planned.
| Field | What it means | In the ₹2,00,000 example |
|---|---|---|
| Capital | Money allocated to trading | ₹2,00,000 |
| Risk % | Share of capital you accept losing on this trade | 1% |
| Entry / Stop loss | Planned order price and exit price | ₹1,200 / ₹1,150 |
| Risk amount | Capital × Risk % | ₹2,000 |
| Risk per share | |Entry − Stop loss| | ₹50 |
| Quantity | Risk amount ÷ risk per share, rounded down and capped by capital | 40 shares |
| Capital required | Quantity × Entry | ₹48,000 |
| Actual risk | Quantity × risk per share | ₹2,000 |
| Stop distance % | Risk per share ÷ Entry × 100 | 4.17% |
How much should you risk per trade?
A common framework is to risk 1% of trading capital per trade by default and never more than 2%. At 1%, a run of losing trades dents the account without crippling it, which leaves you able to keep following the plan. The percentage is a personal decision, but it should be fixed before you look at a chart, not raised because a setup looks exciting.
| Risk % | Rupee risk | Quantity | Capital required |
|---|---|---|---|
| 0.5% | ₹1,000 | 20 shares | ₹24,000 |
| 1% (default) | ₹2,000 | 40 shares | ₹48,000 |
| 2% (ceiling) | ₹4,000 | 80 shares | ₹96,000 |
Why does the calculator cap quantity by capital?
When the stop is very close to entry, the risk formula can ask for more shares than your capital can buy. The calculator therefore works out a second number — capital ÷ entry, rounded down — and uses whichever quantity is smaller. When the cap applies, your actual risk is below your chosen percentage, and the result is flagged as capped by capital.
Quantity = min( floor(Risk amount ÷ Risk per share), floor(Capital ÷ Entry) )When should you skip a trade instead of buying one share?
If your rupee risk divided by the risk per share is less than one, the calculator shows a quantity of zero and marks the trade as a skip. It happens with high-priced stocks or wide zones, where a single share already risks more than your limit. Buying one share anyway quietly breaks your own risk rule.
How should you read the result before placing an order?
Treat the quantity as the maximum consistent with your rule, not a target to round up to. Check that the capital required leaves room for other open trades, that the stop distance makes sense for the zone, and that the target offers at least twice the risk. The calculator does not include brokerage, taxes, slippage or overnight gaps, so a real loss can be slightly larger than the actual risk shown.
- Open trades add up: three trades at 1% each put 3% of capital at risk together.
- Gaps can skip your stop: a stock can open beyond it after a weekend or results.
Frequently asked questions
How do you calculate position size in stock trading?
Multiply capital by your risk percentage to get the rupee risk, then divide it by the gap between entry and stop loss. Round down to a whole share. With ₹2,00,000 at 1% and a ₹1,200 entry with a ₹1,150 stop, the risk is ₹2,000, the gap is ₹50 and the quantity is 40 shares. Also confirm that 40 × ₹1,200 = ₹48,000 fits within your available capital.
Position size kaise calculate kare?
Pehle decide karein ki ek trade par capital ka kitna percent risk lena hai — aam taur par 1%. ₹2,00,000 ka 1% = ₹2,000. Phir entry aur stop loss ka gap nikaalein, jaise ₹1,200 − ₹1,150 = ₹50. Quantity = ₹2,000 ÷ ₹50 = 40 shares. Hamesha neeche round karein, aur agar answer 1 se kam aaye to trade skip karein.
What is the 1% rule in trading?
The 1% rule means a single trade should not lose more than 1% of your trading capital if the stop loss is hit. It limits loss per trade, not the amount invested: on ₹2,00,000 you might invest ₹48,000 in a trade while risking only ₹2,000, because the stop sits ₹50 below a ₹1,200 entry. The calculator applies this rule automatically.
Does the position size calculator work for intraday and short trades?
Yes. The formula only needs capital, risk %, entry and stop loss, so it works for intraday, swing and positional trades alike. For a short (sell) trade enter a stop above entry; the calculator uses the absolute gap. Intraday leverage from a broker does not change the risk maths — the rupee loss at the stop is still quantity × gap.
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Educational calculator only. Results depend entirely on the numbers you enter and are not investment advice or a recommendation to trade.