Risk Calculator
Estimate your risk amount and position size from your account balance and stop distance.
Risk amount = balance × risk % ÷ 100. Position size in units = risk amount ÷ the price distance from entry to stop. It works when the instrument is quoted in your account currency and ignores spread, slippage and commissions. For lots, use the position size calculator.
Educational calculation only. Not financial advice.
How the calculation works
- Risk amount = balance × risk % ÷ 100.
- Stop distance = the absolute difference between entry and stop.
- Position size (units) = risk amount ÷ stop distance.
Worked example with hypothetical numbers: a 10,000 balance risking 1% gives a risk amount of 100. With an entry at 2000 and a stop at 1980 the distance is 20, so the size is 100 ÷ 20 = 5 units. If the stop is hit, the loss is about 100 before spread, slippage and commissions.
Assumptions and limitations
- One currency: the instrument's quote currency is assumed to be your account currency.
- Units, not lots. Brokers define lot sizes differently: VERIFY CURRENT DATA in your broker's contract specification, or use the position size calculator.
- No spread, slippage, gaps, commissions, swaps or margin.
- Educational calculation, not advice or a recommendation to trade.
AdRisking a funded account instead of your own?
Funded evaluations cap the loss per day and in total, which changes how much you can risk per trade. Check FTMO's current rules for your account type on its site. Evaluation fees apply and nothing here promises a pass or a profit.
Explore FTMODisclosure: Some links on this website are affiliate links. If you use them, we may receive compensation at no additional cost to you. This does not determine our editorial analysis, reviews or comparisons.
AdComparing funded programmes?
FundingPips publishes the daily and overall loss limits for each programme on its own site: check them against the risk you plan to take. Evaluation fees apply and nothing here promises a pass or a profit.
Explore FundingPipsDisclosure: Some links on this website are affiliate links. If you use them, we may receive compensation at no additional cost to you. This does not determine our editorial analysis, reviews or comparisons.
Compare published daily and overall loss limits · News trading rules
AdMark the stop on a chart first
Place your entry and stop levels on a chart before you size the trade. Check TradingView's current plans and features on the official site.
Explore TradingViewDisclosure: Some links on this website are affiliate links. If you use them, we may receive compensation at no additional cost to you. This does not determine our editorial analysis, reviews or comparisons.
Managing leverage Your leverage is set by your risk and your stop, not by the broker's maximum.
Effective leverage = risk per trade % ÷ stop distance %. Size the position from the risk first and the leverage follows.
- 1% risk, stop 1% away: position about 1 times the account.
- 1% risk, stop 0.5% away: about 2 times.
- 1% risk, stop 0.25% away: about 4 times. A tight stop raises leverage, so check it before you enter.
Example on a $10,000 account: 1% is $100. With a stop 0.5% away the position is $100 ÷ 0.005 = $20,000, which is 2 times the account (arithmetic, not a forecast).
- The broker's maximum leverage is a ceiling, not a target. Use the stop distance to decide.
- No stop, no trade: every order carries its stop, see Trade Gate.
- Prop firms add their own limits (daily loss, max loss). Check them in the drawdown calculator.
Retail CFD leverage is limited by regulators in some countries. In Australia, ASIC's CFD product intervention order limits the leverage available to retail clients (ASIC consultation CS 64, October 2026; read ASIC's page for the current limits). VERIFY CURRENT DATA with the regulator and your broker.
Frequently asked questions
How is the risk amount calculated?
Risk amount = account balance × risk percentage ÷ 100. With a 10,000 balance and 1% risk, the amount you accept losing on the trade is 100.
How is the position size calculated?
Position size in units = risk amount ÷ the distance between entry and stop, in price. If you risk 100 and the stop is 20 price units away, the size is 5 units.
When is this calculator accurate?
When the instrument is quoted in your account currency, as with gold or oil against USD in a USD account. It does not convert other currencies and it does not turn units into lots. For lots and a USD/JPY conversion use the position size calculator.
Does it include spread, slippage and commissions?
No. A real loss can be larger than the calculated risk because of the spread, slippage, gaps over the stop, commissions and swaps.
Are the prices in the calculator real?
No. The values loaded on the page are round example numbers. Replace them with your own entry and stop.
Related
- Position size calculator: lots for forex, gold and oil, with editable contract sizes.
- Prop firm lot size calculator: lot size and how much of a funded account's daily loss allowance one stop-out uses.
- Prop firm loss limits compared
- TradingView guide
Written by
Volodymyr KravchenkoIndependent market researcher focused on Forex, Gold, commodities, macroeconomic data and AI-powered financial intelligence.
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Educational research, not personal advice. See our editorial policy and methodology.
This content is provided for educational purposes only and is not investment advice. Trading involves risk, and past performance does not guarantee future results. Affiliate relationships may exist. Always conduct your own independent research before making financial decisions.