Risk tool 05
Position size calculator
Translate a maximum account risk and stop distance into position size.
Educational estimate
Maximum loss$100.00
Position quantity0.050000
Position notional$5,000.00
Stop distance2.00%
Use the venue preview as the final source for fees, margin, and estimated liquidation.
Risk-based sizing starts with the amount you can lose, not the amount of leverage available. Fees and slippage still need a buffer.
Read the full guideMethod and limits
Start with the invalidation loss
Risk-based sizing divides a currency loss budget by the adverse distance per unit. It should use a stressed exit beyond the trigger and include fees because stops and market orders do not guarantee the planned price.12
The resulting size still needs venue checks for minimum quantity, leverage, margin, price bands, and available depth.34
Source desk
Source 1 / U.S. Securities and Exchange Commission, Investor.gov / accessed 28 July 2026Types of ordersSource 2 / U.S. Commodity Futures Trading Commission / accessed 28 July 2026Understand your contractual obligationsSource 3 / SEC Investor.gov / accessed 28 July 2026Types of ordersSource 4 / CME Group / accessed 28 July 2026How traders measure liquiditySource 5 / Novrinex / accessed 28 July 2026Calculator assumptions and educational methodology