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 cornerstone of professional trading money management. The fixed percentage method ensures that no single loss can destroy your account — losses are always proportional to your current equity.
Core formula:
Risk Amount ($) = Account Balance × Risk Percentage / 100
Position Size = Risk Amount / (Entry Price − Stop Loss Price)
For leveraged markets (futures, forex):
Position Size (contracts) = Risk Amount / (Stop Distance × Point Value)
Worked example (stocks):
Account: $25,000. Risk per trade: 1%. Entry: $145.00. Stop loss: $138.00.
Risk Amount = $25,000 × 1% = $250
Stop Distance = $145.00 − $138.00 = $7.00
Position Size = $250 / $7.00 = 35.7 → 35 shares
Total Position Value = 35 × $145 = $5,075 (20.3% of account)
Worked example (futures — E-mini S&P 500):
Account: $50,000. Risk: 1% = $500. Stop: 4 points. ES point value = $50.
Risk per contract = 4 × $50 = $200
Contracts = $500 / $200 = 2.5 → 2 contracts
Standard professional risk guidelines:
- 0.5–1% per trade: Conservative, recommended for most traders
- 1–2% per trade: Moderate; experienced traders
- 2–3% per trade: Aggressive; high-conviction trades only
- 5%+ per trade: Gambling-level risk; avoid
The math of survival: At 1% risk, you can lose 69 trades in a row before losing 50% of your account. At 5% risk, only 13 consecutive losses halve your equity. Consistency over conviction is the professional standard.