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Trading Risk Calculator

Set what you are willing to lose and where the trade is wrong. Everything else — position size, exposure, profit, loss, risk/reward — follows from those two numbers.

Your trade

You are risking $100 on this trade.

Direction

4% away — below your entry.

Optional

Gives you 1 : 3 risk to reward.

Position Measured In

Try an example

Position Size

50shares

Maximum Risk

$100

1% of your account

Risk Per Share

$2

4% from entry to stop

Position Value

$2,500

25% of account exposed

Potential Loss

-$100

If the stop is hit as planned

Potential Profit

+$300

+3% of your account

Risk / Reward

1 : 3

Break even by winning 25% of the time

Account At Risk

1%

Ten losses in a row would cost about 10%

Long tradeR:R1 : 3
  1. 01Maximum Risk
    $10,000 × 1%$100
  2. 02Risk Per Share
    $50 − $48$2
  3. 03Position Size
    $100 ÷ $250 shares
  4. 04Position Value
    50 × $50$2,500
  5. 05Reward Per Share
    $56 − $50$6
  6. 06Potential Profit
    50 × $6$300
  7. 07Risk / Reward
    $6 ÷ $21 : 3
  8. 08Break-Even Win Rate
    1 ÷ (1 + 3)25%

The concepts behind these numbers

Each result above comes from one idea. Read the idea, then come back and change the input to see it move.

Risk Per TradeWhere the dollar budget comes fromStop LossWhere the trade is proven wrongPosition SizeHow the two combine into sizeRisk/Reward RatioWhether the trade is worth taking

This website provides educational information only. It is not financial, investment, or trading advice. Results assume your stop fills at the stop price; gaps, slippage, commissions and financing costs are not included and will change your real outcome. Verify every figure with your broker before placing a trade.