⚖️ Capital Preservation Tool
Position Size Calculator for Stock Traders
Never risk more capital than planned. Calculate the exact number of shares to buy or short based on your defined risk percentage and stop-loss level.
Allowed Risk Budget (₹)₹1,000.00
Risk per Share
Total Capital Deployed₹62,500.00
Capital Utilization62.5%
Maximum Expected Loss₹1,000.00
Recommended Position Size
25 Shares
The Mathematics of Position Sizing
Professional risk management dictates that you should determine your trade quantity from your risk budget, rather than picking an arbitrary round number of shares.
Position Size Formula:
Quantity = (Account Capital × Risk %) / |Entry Price - Stop Loss Price|
By enforcing this rule, a losing trade will never damage your account beyond your pre-set risk parameter (typically 1% to 2% per trade).