Risk Per Trade Calculator
Calculate the maximum dollar amount to risk per trade based on your account size and risk percentage.
Essential for protecting your trading capital.
Risk per trade is the maximum dollar amount you are willing to lose on any single trade. It keeps your account safe from catastrophic losses.
Risk Amount = Account Balance × (Risk Percentage / 100)
Common risk levels:
- 0.5% — Very conservative (200 losing trades to empty account)
- 1% — Conservative, recommended for most traders
- 2% — Moderate risk
- 3% — Aggressive
- 5%+ — Very aggressive (not recommended)
Why it matters:
- At 1% risk, a 10-trade losing streak only costs 10% of your account
- At 5% risk, a 10-trade losing streak costs 40% of your account
- Professional fund managers typically risk 0.5–1% per trade
The 2% Rule: Many trading books recommend never risking more than 2% of your account on a single trade. This gives you enough room to survive losing streaks while still allowing meaningful position sizes.