Risk Management
Risk Calculator
Calculate your position size and visualize your risk-reward ratio for any trade
Calculate your position size and visualize your risk-reward ratio for any trade
How much are you willing to lose on this trade?
Risk to Reward
1 : 3.00
Excellent ratio — risking $1 to gain $3.00
Risk Unit
$100.00
Position Size
50shares
Total Cost
$2,500.00
Risk / Share
$2.00
Profit / Share
$6.00
Potential Profit
$300.00
Drag the handle to adjust your target price
Excellent risk-reward! For every $1 risked, you could gain $3.00.
Professional traders typically risk no more than 1-2% of their account on any single trade.
Look for trades with at least a 2:1 reward-to-risk ratio for better profitability over time.
Never enter a trade without a predetermined stop loss to limit your downside risk.
Track every trade to identify patterns and improve your risk management over time.
Understanding how to calculate position sizes is just the beginning. Dive deeper into risk units, position sizing strategies, and best practices for protecting your trading capital.
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